Donnerstag, 18. Juni 2009

IKB

Remember IKB?

One of the first dominoes to fall in Germany's banking crisis, IKB used to be a 91 % subsidiary of fully government-owned KfW. The bailout back in 2007 ultimately cost the taxpayer nearly 10 bn €.

After the bailout, KfW's 91 % stake was unceremoniously sold to Lone Star in the fall of 2008 (low price, unknown terms&conditions).

And what do we read in today's FTD?

IKB had already asked for 5 bn € in government guarantees earlier this year. It is now asking for additional 7 bn €.

I'm confused:

Why is Berlin guaranteeing bonds issued by a bank owned by LoneStar? What was the point of selling the bank to LoneStar, if the risk stays with the taxpayer?

Kommentare:

  1. They want to let Lone Star participate in the guarantee. However, that is still more then necessary as Lone Star will otherwise have all the risk.

    http://www.spiegel.de/wirtschaft/0,1518,631506,00.html

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  2. I wonder how much they charge IKB for those guarantees.

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  3. The purpose of the LoneStar Deal was prob to get IKB from the political agenda: Ohhh it is not our's anymore...!

    Wait a minute! Who is LoneStar's legal adviser in Germany? What's his name again?

    Of course, IKB's troublesome Ireland activities qualify for Soffin...

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