Commerzbank Bailout Draws Scrutiny From EU

Law360, New York (November 5, 2008, 12:00 AM EST) -- The European Commission reportedly intends to investigate Germany's planned capital injection of €8.2 billion ($10.7 billion) into Commerzbank, saying the terms of the rescue could distort competition in the financial market.

Jonathan Todd, an EU spokesman, told reporters on Wednesday that it only learned of Commerzbank's tap of the bailout fund from press reports, Reuters reported.

He said that the loan has two tranches, one with an interest rate of 8.5 percent and one with a rate of 5.5 percent, while European Commission bailout guidelines require...
To view the full article, register now.