EU Probes Possible State Aid To German Savings Bank

Law360, New York (November 4, 2009, 5:05 PM EST) -- The European Commission has launched an in-depth probe into possible aid Sparkasse KolnBonn has received and asked the German savings bank to provide a restructuring plan, the competition watchdog said Wednesday.

The regulator plans to investigate whether actions from the cities of Cologne and Bonn — Sparkasse's majority shareholders — to increase the bank's capital count as state aid that could violate the European Union's competition rules.

The probe stems from the cities' "silent participation" in the bank, which gives investors financial remuneration but no voting...
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