Open

Coming up

Don't miss

Replay


LATEST SHOWS

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • France calls on its nationals to leave Libya as violence escalates

    Read more

  • Boko Haram kidnap Cameroon minister's wife in deadly attack

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

  • Netanyahu says Hamas 'violating its own ceasefire'

    Read more

  • Muslims prepare for Eid al-Fitr festival

    Read more

  • ‘Irresponsible’ American dad tries to scale Mont Blanc with children

    Read more

  • Ukraine fighting prevents observers from accessing MH17 crash site

    Read more

  • In pictures: Crowds flock to enjoy the Tour de France show

    Read more

  • Video: At the scene of the Air Algérie crash in Mali

    Read more

  • Costa Concordia arrives in port of Genoa to be scrapped

    Read more

  • In pictures: Youths clash with police at banned Gaza protest

    Read more

  • Russia lashes out at new EU sanctions over Ukraine

    Read more

  • Bodies of all Air Algérie crash victims to be brought to France

    Read more

  • Syrian army and ISIS both claim advances

    Read more

  • Briton kidnapped in Yemen freed after five months

    Read more

  • Nibali rides serenely toward a place in Tour history

    Read more

  • Germany's Tony Martin wins 20th stage of Tour de France

    Read more

  • New round of Gaza ceasefire talks takes place in Paris

    Read more

American group buys German bank IKB

Latest update : 2008-08-21

German bank IKB, the biggest German casualty in the U.S. subprime crisis, has been taken over by an American private equity group. Financial details were not disclosed.

US private equity group Lone Star is to take over IKB, the German bank rescued by the state development bank KfW after collapsing because of the subprime mortgage crisis, KfW said Thursday.

Lone Star is to buy KfW's 91 percent stake in IKB. Financial details were not disclosed. Further details were due at a news conference in Frankfurt later on Thursday.

IKB, a specialist in loans to small- and medium-sized business, invested heavily in securities tied to high risk subprime mortgages in the United States.

When US homeowners began defaulting on these home loans, these securities plunged in value and cost banks around the world hundreds of billions of dollars as they wrote off their investments.

In Germany, Europe's biggest economy, the first and biggest casualty was IKB. To prevent it going bankrupt it was bailed out to the tune of several billion euros gathered by the government, KfW and private German lenders.

Lone Star saw off other bids from Swedish bank SEB and fellow US private equity group Ripplewood, sources said. Two state-owned German banks, BayernLB and WestLB, were also interested but withdrew from the bidding.

Date created : 2008-08-21

COMMENT(S)