LBBW sells risky assets to international investors
FRANKFURT Aug 6 (Reuters) - Germany's largest public sector lender LBBW, which took a state bailout during the financial crisis, said it has sold 4.7 billion euros ($6.3 billion) worth of risky assets to international investors.
LBBW's owners - the German state of Baden-Wuerttemberg, the Baden-Wuerttemberg savings bank association and the city of Stuttgart - had granted guarantees on the portfolio of assets.
LBBW, commenting on behalf of its owners, said in its statement on Wednesday it would not disclose any financial details of the transaction. It did not provide any further details on who bought the assets.
The bank, like other regional state-owned lenders known as landesbanks, lost billions of euros on risky investments in the financial crisis, forcing its owners to prop it up with a 5 billion euro capital injection in 2009, funded with taxpayer money, and an additional 12.7 billion euros in loan guarantees.
(1 US dollar = 0.7481 euro) (Reporting by Maria Sheahan, editing by David Evans)