Steinbrck looking for blood over KfWs Lehman scandal
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German Finance Minister Peer Steinbruck has called for KfW officials to pay the consequences for the state development banks mistake transfer of 300 million 427 million to Lehman Brothers just as the US investment bank was collapsing.
This is an outrageous event, Steinbruck said on Thursday at a meeting with KfW leaders in Berlin.
Steinbruck is the deputy chairman of the advisory board for the state development bank, where officials frantically tried to stop the erroneous transaction only to find they were unable to get their money back. There will be both organizational and procedural consequences, he said, but declined to give details.
This is not the first time KfW has been embroiled in the financial crisis sparked by the subprime lending mess in the United States. Now KfW can only expect half of the cash much of which was taxpayer money returned via insolvency proceedings at Lehman Brothers.
. Earlier this year, KfW was forced to bailout the German industrial bank IKB to the tune of several billion euros
on September 18th 2008 in news