State-controlled lender, WestLB, has reached a restructuring deal with its owners that will reduce its risk-weighted assets by 2015, The Wall Street Journal reports. The bank, which is owned by the state of North Rhine-Westphalia and two savings banks associations, has submitted the plan to the European Commission. The plan has recommended separation of WestLB into four business units, consisting of the Verbund business and corporate finance, project finance, transaction banking and group and service functions, for a later sale or partnerships. As per the agreement, WestLB will have to reduce its balance sheet and search for new owners by the end of 2011.
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