DUSSELDORF, Germany, Sept. 20 (UPI) -- German bank WestLB said it was considering a merger with landesbank BayernLB, which would put the bank in compliance with a government bailout agreement.
Both BayernLB and WestLB were given billions of dollars in government aid during the financial crisis.
The European Union then ordered WestLB, which lost $690 million in 2009, to find a new owner.
A merger with BayernLB, which lost $3.4 billion last year, would create the third largest bank in Germany and possible trigger a round of mergers by other public banks.
Sources said WestLB is also discussing a merger with Helaba and Deka Bank in Frankfurt and Berliner Landesbank, but a WestLB spokesman only confirmed the discussions with BayernLB, The New York Times reported Monday.
UPI
