BRUSSELS, June 30 (Reuters) - The European Commission on Tuesday temporarily approved for six months a recapitalisation and asset relief plan for Landesbank Baden-Wuerttemberg (LBBW) by the German state of Baden-Wuerttemberg.
The executive arm of the 27-nation European Union said in a statement it would open an in-depth investigation into the complex valuation of the impaired assets before making a final decision.
It cited doubts that the asset relief measure could be in line with EU rules.
"An impaired asset relief measure, like a recapitalisation, can be a useful instrument for maintaining trust in financial markets. However, the Commission has the duty to verify in detail that the valuation is done properly," EU Competition Commissioner Neelie Kroes said in the statement. (Reporting by Bate Felix; Editing by Dale Hudson)