Monday, September 3, 2007
German bank losses WAY bigger than first thought
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.