German bank seeks cash injection

An official tonight said that Germany’s BayernLB bank will seek a capital injection of up to €5.4bn from the federal government.

That makes it the first bank to seek help under Germany’s financial sector rescue plan.

Bavarian state finance minister Erwin Huber announced the plan after a meeting of the public-sector wholesale bank’s administrative board – which he heads.

Germany’s rescue plan – worth up to €500bn – was approved by politicians on Friday.

Huber indicated at the weekend that BayernLB would seek help.