FRANKFURT (Reuters) – German lender HSH Nordbank is negotiating with its owners over a fresh infusion of capital following writedowns and higher provisions for loan losses in the billions, Handelsblatt reported.
Citing financial sources, the German business daily wrote in a story due for publication on Monday that the bank — partially owned by U.S. financier JC Flowers — is hoping to receive help mainly from the states of Schleswig-Holstein and Hamburg that each hold stakes of about 30 percent.
“If the states can raise the necessary money, then (German bank rescue fund) SoFFin should be left out,” Handelsblatt quoted one source close to the talks as saying.
HSH Nordbank could not be reached for a comment.
(Reporting by Christiaan Hetzner, additional reporting by Arno Schuetze in Hanover; editing by Elaine Hardcastle)