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?
Posts
Shaun Rein on the TSM
vor 1 Jahr
Try doublethink and you will understand.
AntwortenLöschenThey 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.
AntwortenLöschenhttp://www.spiegel.de/wirtschaft/0,1518,631506,00.html
I wonder how much they charge IKB for those guarantees.
AntwortenLöschenThe purpose of the LoneStar Deal was prob to get IKB from the political agenda: Ohhh it is not our's anymore...!
AntwortenLöschenWait 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...