2009775ec: commission decision of 21 october 2008-l_27820091023en00320050.pdf

Here are the key points summarized:

Decision:

• The European Commission requires Germany to implement a restructuring plan for IKB Deutsche Industriebank AG (IKB) to ensure its financial stability and maintain public confidence.
• The goal is to reduce IKB's balance sheet by €20 billion, limit its risk-taking activities, and increase capital adequacy.

Key Measures:

1. Asset Disposal: Sell or unwind certain assets by 30 September 2011, including:
   • 50% participation in Movesta Lease and Finance GmbH
   • Certain non-strategic assets (€1.7 billion book value)
2. Balance Sheet Restructuring: Ensure IKB's balance sheet does not exceed €33.5 billion by 30 September 2011.
3. Risk-Taking Limitations: Restrict risk-taking activities and limit leverage to maintain a sufficient capital buffer.
4. Monitoring: Germany must provide regular annual reports on progress in implementing the restructuring plan.

Timeline:

• All measures must be completed by 30 September 2011.
• The Commission will monitor compliance and may amend or replace measures if unforeseeable circumstances arise.