(The Wall Street Journal) -- IKB Deutsche Industriebank said German development bank KfW has not only taken on all of IKB's risks with regard to its Rhineland Funding investment vehicle but has also assumed "expected possible losses" of as much as €1bn ($1.37bn) from risk-exposed positions on IKB's balance sheet.

The emergency bailout cast a light on how quickly the world's credit markets have turned on investors, especially those who have borrowed to increase investments that now face losses amid the turndown in the subprime-mortgage secondary markets.