Lower Saxony's municipalities want to separate Sparkasse from NordLB
September 29, 2020
Braunschweig's mayor, Ulrich Markurth, wants to transfer the Braunschweigische Landessparkasse into municipal ownership with help of the state of Lower Saxony, the largest shareholder of NordLB. Currently, the institute, which is one of the largest savings banks in Lower Saxony, is a dependent unit within the NordLB Group. In the future, the cities of Braunschweig and Salzgitter as well as the districts of Helmstedt, Wolfenbüttel and Holzminden would be the owners. The Lower Saxony Minister of Finance, Reinhold Hilbers, reacts cautiously to the plans of the municipalities in the Braunschweig state. Lower Saxony just managed to put together a rescue package of EUR 3.6bn to save NordLB. A spin-off shortly after the rescue should not harm NordLB. Financial experts estimate the volume of the spin-off at around EUR 700m. In addition, the local authorities must ensure that the savings bank has a capital base estimated at around EUR 300m.
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