German Bank at Risk of Default

July 11, 2016 How the bank proceeds will test Germany’s commitment to the bail-in approach.

|July 11, 2016

A German bank, Bremer Landesbank, may be in need of a bailout. The bank is owned by Nord/LB, the city of Bremen and the savings banks association in North Rhine-Westphalia. Initially, the three groups discussed a capital increase at the banks, as well as potentially a buyout or transfer in ownership to Nord/LB. Nevertheless, on July 7, Prime Minister of Lower Saxony Stephan Weil declared that there will be no capital support from Lower Saxony and Bremen for the struggling bank.

Troubles in the shipping industry left a range of German lenders — from banking giant Deutsche Bank to smaller banks like Bremer Landesbank and its peer Nord/LB — grappling with the impact of losses from shipping loans. The shipping industry’s problems prompted Bremer Landesbank, which had assets of about 29 billion euros ($32 billion) at the end of 2015, to announce that it would have to have to take losses worth several hundred million euros.

European regulations prohibit states from directly injec

Get full access now:

Get access to all In-Depth Content

Over 10,000 Premium Readers

One Month Introductory Offer One month for $9.99, then $39 quarterly
$9.99
Subscribe
3 Months Introductory Offer Three months for $29, then $35 quarterly
$29
Subscribe

Reader feedback

“I want to thank you for all your writing. Your look at history--causes, motivations, effects--is so astounding against the mainstream dates, events, and bias. I read as much of your site as I can, but I most of all love the look at history. Nobody has as profound a look at American & European history, or WWII. You are peerless.” Christopher T. of Raleigh, NC
“The material is always well-written, and is very useful for understanding the significance of important issues developing across the world.” Beckett T. of Washington
“Geopolitical Futures' insights are mind-blowing. Their analyses never fail to distill order from the jumble of current events. No other publication comes close to the caliber of Geopolitical Futures' forecasts.” Bill S. of California
“Your emails is my best link to understanding what is going on in the world's hot spots without the extreme typical media bias. Keep up the great work. Thanks for your considerable efforts.” David H.
“Geopolitical Futures is unparalleled for open source analysis. It's like they have a crystal ball. I'm jealous of George Friedman's ability to effectively communicate such a complex world in such relatively simple terms. I'd pay far more money than I am now to keep this service. I feel like I'm stealing.” Dominic F. of Virginia
“Your analysis is thought-provoking and informative. I am a geopolitical hobbyist, but I also use your information to manage my retirement portfolio. I love your cogent, dispassionate analysis. Kudos to you.” Kevin A of Maryland
“I was an Economist subscriber. No longer. I find your articles insightful, easy to read, and only takes few minutes a day to stay informed. Bravo!” Pat G.
“The best analysis out there, by far. As a geopolitical analyst, you guys are an inspiration, a reference and a constant motivation for improvement. Thanks for the rigour and the high quality you deliver in all of your work!” Ricky M. of Panama
“I think you doing an excellent job keeping people informed about global trends. You are doing analysis in a timely manner for events across the globe which is challenging task. Keep up the good work!” Nicolae C. of Romania
“The insights that you offer often go against "conventional wisdom" and conformist views. However, more often than not, your profound assessments and forecasts, which stem from a deep understanding of a wide range of associated dynamics, have turned out to be correct with passage of time. It is for these reasons that I invest in your work.” K Singh of India
“One of the vanishingly few analysis publishers that try to understand the current situation in light of local, regional and international facts and historical events, with no discernible bias, a transparent effort to overcome cognitive bias, and refreshing willingness to go against the current when seeking to shed light on events.” Ian W. of Paraguay

Get full access now:

Get access to all In-Depth Content

Over 10,000 Premium Readers

One Month Introductory Offer One month for $9.99, then $39 quarterly
$9.99
Subscribe
3 Months Introductory Offer Three months for $29, then $35 quarterly
$29
Subscribe