Monday, September 3, 2007

German bank losses WAY bigger than first thought

Rescued IKB losses could climb to €700m

IKB, the German bank that had to be rescued after taking a massive hit from the US sub-prime mortgage crisis, today said that it expects to lose up to €700 million (£473 million) this year. The lender, which is partly state-owned, sent a shockwave through the markets in July when it issued a profit warning linked to its investments in US subprime debt - housing loans extended to borrowers wih poor credit histories. IKB’s collapse was averted with a €3.5 billion rescue by other German banks.

Posted by jeremiah @ 05:02 PM (528 views)
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4 thoughts on “German bank losses WAY bigger than first thought

  • larger loss than at first thought … you do surprise me. better get used to that.

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  • For more news for the same @ BBC Sub-prime crisis to cost IKB $1bn
    I also heard BBC Today this morning this guy said that there is $500 billion of subprime mess and we just know about $100 billion yet.

    Its going to be so much fun this month when Q3 figures are going to come up. When these companies will have to factor these losses in (legally).

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  • It always goes the same way.

    I remember the lies JPMorgan and Citigroup told about their Enron exposure.

    First it was $20million, then $100m, then $200m then $1billion, then they shut up. Just 2 months ago they settled a class action lawsuit for $2.2billion a piece. And they had to pay fines to the SEC and other investors some years ago.

    Put a zero on the end of any claim any banks make. Then you’re in the ballpark.

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  • dohousescrashinthewoods says:

    I agree, whiteknight, I think there is a lot that is still in the woodwork.
    The Titanic seemed fine after the iceberg shock, but within a few hours it was all too clear.

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