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.
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