Summary Box: Commerzbank to wind down unit

AP News
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Posted: Mar 30, 2012 12:58 PM
Summary Box: Commerzbank to wind down unit

SHUTTING DOWN: Germany's Commerzbank AG said Friday it will wind down its troubled Eurohypo real estate unit instead of selling it, as it had previously been ordered to do when it was bailed out in 2009.

EC COURSE CHANGE: The European Commission agreed to change its requirements for allowing the German government to rescue Commerzbank in the aftermath of the collapse of U.S. investment bank Lehman Brothers.

HARD SELL: Commerzbank was supposed to sell Eurohypo, which loaned money for commercial real estate projects, by the end of 2014. Germany maintained a sale was impossible because of heavy financing requirements.