German bank becomes first EU victim of U.S. subprime mortgage woes

[appleannie1]

FRANKFURT: A small German bank on Monday became the first European victim of gambles in securities issued by the tottering subprime mortgage business in the United States. The news raised the possibility that a contagion may reach further into European markets than had been anticipated.

IKB Deutsche Industriebank, a bank that provides loads to medium-sized companies, said that investments in the financial instruments that fueled the subprime lending industry in the United States were sinking in value, threatening its own creditworthiness.

As a result, the German state bank KfW, which owns 37 percent of IKB, will assume financial responsibility for the investments. IKB's chief executive, Stefan Ortseifen, will also be replaced by Günther Bräunig, a managing director at KfW.
http://www.iht.com/articles/2007/07/30/business/sub.php

The greedy rethugs are screwing up the whole world.

[Poll_Blind]

1. Worth a kick and a recommend- at least! n/t

PB

[nadinbrzezinski]

2. Kick and recommended, here we go

[Maddy McCall]

3. On to the greatest page.

5th rec.

[lovuian]

4. Wow France Now Germany Asia South Korea Australia

the Subprime disaster is going to trigger a world wide recession

Amazing

[Double T]

5. neoCONSERVATIVES are destroying the world.

THEY must be STOPPED!!!

HIGHLY Recommended!

[babylonsister]

6. Can anyone EXPLAIN this to me? Thank you. nt

[nadinbrzezinski]

7. In simple terms

a medium sized german bank is biting the dust

With all the consequences this brings

In a Flat world, well it affects all of us

[babylonsister]

8. So since the world isn't flat, it's nothing to worry about? nt

[Mojorabbit]

9. recession coming

I think from what i am reading. Difficulty getting loans cause banks won't be lending. I think a whole lot more banks than mentioned were involved in these hedge funds and now can't sell them.
Tomorrow should be interesting.

[NYC]

10. Go read this thread, esp. Post #3.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2947929

(The world wasn't flat, but I think they're flattening it.)

Paul Krugman regarding the credit crunch:
http://freedemocracy.blogspot.com/2007/08/paul-krugman-very-scary-things.html

[Poll_Blind]

11. Kick! n/t

PB