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Log inGerman bank IKB sold for 150 million euros: reports
German bank IKB sold for 150 million euros: reports
by Outspoken on Sat Aug 23, 2008 5:46 pm
German bank IKB sold for 150 million euros: reports
AFP News Service
BERLIN (AFP) - German bank IKB, a casualty of the subprime mortgage crisis, was sold to US private equity group Lone Star for 150 million euros, German media reported Saturday.
"According to informed sources, the amount (of the sale) is 150 million" euros (222 million dollars), the newspaper Die Welt said.
IKB had been rescued by state development bank KfW, which earlier this week did not disclose the sale price of its 91 percent stake in IKB. KfW said only that it was a "low three digit million euro amount" -- meaning presumably anything between 100-300 million euros.
IKB, a specialist in loans to small- and medium-sized business based in Duesseldorf, invested heavily in securities tied to high risk subprime mortgages in the United States.
When US homeowners began defaulting on these home loans, these securities plunged in value and cost banks around the world hundreds of billions of dollars as they wrote off their investments.
In Germany, Europe's biggest economy, IKB was the first and biggest casualty of the subprime mortgage meltdown. To prevent it going bankrupt it was bailed out to the tune of several billion euros gathered by the government, KfW and private German lenders.
http://news.yahoo.com/s/afp/20080823/bs_afp/germanyusbankingtakeoverikb_080823202236;_ylt=AlCAnTR1npCfmW3md.Ecsg2s0NUE
(AFP/File/Barbara Sax)
AFP News Service
BERLIN (AFP) - German bank IKB, a casualty of the subprime mortgage crisis, was sold to US private equity group Lone Star for 150 million euros, German media reported Saturday.
"According to informed sources, the amount (of the sale) is 150 million" euros (222 million dollars), the newspaper Die Welt said.
IKB had been rescued by state development bank KfW, which earlier this week did not disclose the sale price of its 91 percent stake in IKB. KfW said only that it was a "low three digit million euro amount" -- meaning presumably anything between 100-300 million euros.
IKB, a specialist in loans to small- and medium-sized business based in Duesseldorf, invested heavily in securities tied to high risk subprime mortgages in the United States.
When US homeowners began defaulting on these home loans, these securities plunged in value and cost banks around the world hundreds of billions of dollars as they wrote off their investments.
In Germany, Europe's biggest economy, IKB was the first and biggest casualty of the subprime mortgage meltdown. To prevent it going bankrupt it was bailed out to the tune of several billion euros gathered by the government, KfW and private German lenders.
http://news.yahoo.com/s/afp/20080823/bs_afp/germanyusbankingtakeoverikb_080823202236;_ylt=AlCAnTR1npCfmW3md.Ecsg2s0NUE
(AFP/File/Barbara Sax)
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