Today, the European Commission approved a €3 billion recapitalization and €10 billion risk shield for the Germany's HSH Nordbank (HSH), following last week's unanimous HSH shareholder approval of the €3 billion capital injection. The support measures are provided by two major shareholders of HSH, the city of Hamburg and the state of Schleswig-Holstein, which would inject €3 billion into HSH (€1.5 billion each) in the form of ordinary shares with voting rights to keep the bank afloat. They would also provide a €10 billion guarantee, shielding a broad asset portfolio of about €172 billion. A first-loss-tranche of €3.2 billion would be covered by HSH. The second loss tranche of up to €10 billion would be covered by Hamburg and Schleswig-Holstein (50% each).