BRUSSELS, Belgium - The European Union has approved a $7.8 billion bailout for Germany’s regional WestLB bank, which was rattled by it’s exposure bad U.S. debt.
The German regional bank had a net loss of 1.6 billion euros ($2.5 billion) last year, significantly higher than predicted because of the crisis. The state of North Rhine-Westphalia joined the rescue bid to help cover payment defaults. The EU Commission approved the package to protect the bank from volatile markets Wednesday.
“The Commission’s investigation found that the risk shield constitutes state aid, but that the aid is in line with EU rules” since the aid is limited in time and is reversible,” the EU said…
