Two federal states in northern Germany were on Tuesday forced to agree a €13bn ($17bn) bail-out of HSH Nordbank, the shipping financier, whose writedowns on complex structured credit products have crippled the regional lender and hit state budgets. Politicians from Schleswig-Holstein and the city-state of Hamburg, which together own 60% of HSH, met to discuss the rescue package, which requires approval by both parliaments. The deal comprised a €3bn capital injection and €10bn in guarantees on future credit risks.
