KfW suffers €5bn hit from IKB bailout

Kreditanstalt für Wiederaufbau, the state-owned German development bank, could take a hit of more than €5bn ($7.3bn) in losses stemming from its rescue investment in an off-balance sheet funding vehicle sponsored by stricken lender IKB Deutsche Industriebank.

The loss comes some six months after KfW and a consortium of German banks were forced to throw a €8bn credit line to IKB in mid-July to safeguard it from collapse after weeks when it had faced severe funding problems as a result of the liquidity crisis.

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Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on ItExternal link

Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on It