Valovis Bank, owned by the employee trust of retailer KarstadtQuelle, was bailed out by a German guarantee fund after writedowns on its Greek debt holdings erased its equity, Frankfurter Allgemeine Zeitung reported today, without saying where it got the information.
Valovis Bank got 100 million euros ($125 million) in guarantees from the deposit guarantee fund after writedowns of 120 million euros on Greek debt left the bank with too little equity endangering the survival of the lender, FAZ said.
Press officers at Valovis weren’t immediately available to comment.
To contact the reporter on this story: Annette Weisbach in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Frank Connelly at email@example.com