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State Bank In Germany In Trouble

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if it is, the market doesn't know about it..... down only 3.5%

The funny thing is, I read they met again because of IKB. That moment I wondered - why would they meet again? I start to believe these rumours somehow. It's not exactly a new thing for German banks to go bankrupt. Happens every now and then.

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WestLB allegedly has liabilities in the range of €300 million to €400 million, according to a banker familiar with the situation, noting "toxic elements" found at the bank's Brightwater fund. The fund has $35 billion in structured debt spread across several special-purpose vehicles

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WestLB have been linked with trying to find ways to invest money in America's enemies, effectively breaking the Iran-Libya Sanctions Act (ILSA):

"To date, ILSA has been quite effective as a deterrent to investment in Iranian oil and gas. However, there are a lot of clever lawyers looking for loopholes. The Westdeutsches Landesbank thinks it has found a loophole in the definition of what exactly is an investment. That bank came up with a peculiar arrangement that looks like an investment but which the bank insists is no investment. If this problem spreads, with other banks or firms trying end-runs around ILSA, it may be worth providing the administration with some discretionary powers to sanctions activities that are designed to act like investments. "

Interesting that the source of these rumours should be a bunch of Washington lobbyists ....

Edited by Sledgehead

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Maybe it is the Sachsen Landesbank?

correctemundo

http://business.timesonline.co.uk/tol/busi...icle2332477.ece

Barclays’ woes grow as crisis in sub-prime forces its client to be rescued

Barclays Bank was dragged deeper into the sub-prime mortgage crisis last night after Landesbank Sachsen, a major client, had to be rescued by a rival state-owned bank in Germany.

Barclays appears to have been responsible both for designing a complex fund that got Sachsen into difficulty and for helping to pull the plug on the bank by demanding margin calls in respect of another Sachsen investment. . . . . .

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I think you are thinking of SachsenLB.. this story broke over the weekend.

German bank SachsenLB, which was caught up in the US housing market crisis, has been bought out by a rival to save it from bankruptcy.

The government of Saxony, which holds a majority state in SachsenLB, approved the sale to the Landesbank Baden-Württemberg (LBBW) at an emergency meeting of the regional cabinet on Sunday.

A spokesman for the Stuttgart-based bank told AFP that the sale price would be fixed at the end of the year after LBBW had carried out a more detailed evaluation of the Leipzig-based bank.

He said LBBW had also given the bank a 250 million euro ($342 million) cash injection as "an immediate measure."

TD

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