The bailout of German lender IKB, which has been one of the financial institutions worst affected by the sub-prime fallout, is reportedly facing complications after the European Union examined imposing conditions on the deal.

Handelsblatt reports that the EU Commission is investigating the €9.1bn ($12.5bn) bailout, which is being led by state lender KfW. The Commission could force IKB to restructure, duplicating a strategy deployed in June with regard to the €900m rescue of Austrian bank Bawag.