German public-sector bank, WestLB, has accepted demands by the European Union to reduce its balance sheet and operations, The Wall Street Journal reports. The lender’s owners have proposed a restructuring of the bank as a service provider for regional savings banks.
The German state of North Rhine-Westphalia and regional savings banks will present a plan to the European Commission, which will cut WestLB’s balance sheet from €191.5 billion to about €45 billion and cut staff by 80%. It will also sell or wind down noncore businesses.
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