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 €.
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?
Trucking And Blue-Collar Woes
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