Subprime-hit German bank foresees loss as high as €700 million
Deutsche Industriebank AG, a German bank bailed out last month by the government, said Monday that it expected losses of €600 to €700 million ($818 to $954 million) for this fiscal year after being hit by the US subprime mortgage crisis.
The bank that lends to medium-sized businesses ran into trouble after betting the wrong way on the high-risk home loans. IKB nearly collapsed before state-owned KfW, a bank set up immediately after World War II to finance German reconstruction, stepped in with a €3.5 billion ($4.77 billion) rescue package. The loss will be booked in the fiscal year that ends March 31, IKB said. In the most recent fiscal year, it earned €179.6 million ($245.1 million). (m&c.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.