PARIS, Aug. 26 — The eastern German state of Saxony was forced to sell a troubled state-run bank Sunday as the global liquidity crisis set off by the United States subprime mortgage problems claimed its first major European victim. As a result of the market turbulence and the resulting pressure on the bank, continuing its activities without a partner would not be feasible.
Landesbank Sachsen Girozentrale, which received an emergency 17.3 billion euro ($23.6 billion) line of credit from a group of regional savings banks on Aug. 17, is being sold to a larger rival, Landesbank Baden-Württemberg, said the state premier of Saxony, Georg Milbradt. The state government controls 51 percent of the bank, known as Sachsen LB, which is based in Leipzig.
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