The owners of WestLB are to inject up to inject €2bn ($2.90bn) into the troubled German public sector bank to offset an expected 2007 loss of €1bn and to absorb some €1bn expected in temporary write-downs.

Buffeted by a trading scandal as well as global financial market turmoil, the Düsseldorf-based bank will also step-up restructuring plans and seek to advance merger talks with Helaba, its Frankfurt-based counterpart.