<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Oct 25, 2008
</TR><!-- headline one : start --><TR>German banks seek state aid <!--10 min-->
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BERLIN - TWO regional German public banks want to call on aid from the government as part of a huge operation to rescue the banking sector, the magazine Der Spiegel claimed on Saturday.
It identifies the banks as Duesseldorf-based WestLB and Hamburg-based HSH Nordbank.
'We have to arm the bank against the forthcoming storms,' said WestLB's head, Mr Heinz Hilgert, who plans to ask its supervisory body next month to use all the help made available as part of the rescue plan.
It is checking in particular whether it needs to ask for direct recapitalisation aid, Der Spiegel said.
In February the western regional state (Land) of North Rhine-Westphalia and local savings institutions made available a guarantee of five billion euros (S$10.3 billion) to WestLB.
The head of the regional HSH Nordbank, Hans Berger, also wants to take advantage of government guarantees provided for under Berlin's massive aid plan of 480 billion euros for the banking sector, the magazine said.
Shareholders will make a decision next week, it said.
So far only the Bavarian public bank BayernLB has sought state aid, of 5.4 billion euros. The country's second biggest private bank, Commerzbank, is to set up a panel of 40 clients to liaise with management, as reaction to a loss of confidence in the banking sector, the Welt am Sonntag, which goes on sale Sunday, said. -- AFP
</TR><!-- headline one : start --><TR>German banks seek state aid <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
BERLIN - TWO regional German public banks want to call on aid from the government as part of a huge operation to rescue the banking sector, the magazine Der Spiegel claimed on Saturday.
It identifies the banks as Duesseldorf-based WestLB and Hamburg-based HSH Nordbank.
'We have to arm the bank against the forthcoming storms,' said WestLB's head, Mr Heinz Hilgert, who plans to ask its supervisory body next month to use all the help made available as part of the rescue plan.
It is checking in particular whether it needs to ask for direct recapitalisation aid, Der Spiegel said.
In February the western regional state (Land) of North Rhine-Westphalia and local savings institutions made available a guarantee of five billion euros (S$10.3 billion) to WestLB.
The head of the regional HSH Nordbank, Hans Berger, also wants to take advantage of government guarantees provided for under Berlin's massive aid plan of 480 billion euros for the banking sector, the magazine said.
Shareholders will make a decision next week, it said.
So far only the Bavarian public bank BayernLB has sought state aid, of 5.4 billion euros. The country's second biggest private bank, Commerzbank, is to set up a panel of 40 clients to liaise with management, as reaction to a loss of confidence in the banking sector, the Welt am Sonntag, which goes on sale Sunday, said. -- AFP
