The German bank Bayern LP announced yesterday that in anticipation of negative third quarter earnings of around €1 billion (and possible negative fourth quarter earnings), the bank would be seeking additional capital from both the German government and its private investors. The bank expects to obtain approximately €4.5 billion from the German government under the newly adopted Financial Market Stabilisation Act. In addition, the bank’s owners, The Free State of Bavaria and the Association of Bavarian Savings Banks, are expected to invest an additional €700 million and €300 million, respectively. These capital infusions are expected to replace the existing €2.4 million guarantees from each of the owners, although the bank’s owners are also examining whether a guarantee, together with less government funding, would be financially more beneficial. All actions are subject to approval by the bank’s owners, the German Financial Markets Stabilisation Institution (Finanzmarktstabilisierungsanstalt) and the EU Commission. While the stabilization measures under the Financial Markets Stabilisation Act are in effect, the bank has agreed that members of the Board of Management will not receive any bonuses. In addition, the Board of Management will propose to the Board of Administration and the bank’s shareholders that the current dividend be suspended. The bank also announced that it may be seeking strategic restructuring alternatives, including investments by or mergers with third parties.