Mortgage Crisis Forces Sale of German Bank

1st major European victim of US sub-prime mortgage (SPM) problems ... ...

Landesbank Sachsen Girozentrale (a state-run bank in eastern German state of Saxony) is being sold to a larger rival, Landesbank Baden-Wurttemberg. It is the 2nd German lender which was overwhelmed by sub-prime related losses, after another German bank, IKB Deutsche Industriebank, received $8 bil euro bailout last mth.

Sachsen LB's exposure was >$17 bil euro, more than 10x its core capital and more than 1/4 of its total assests.

* Telegraph-SPM *

*****
The scary thing is tt we dun hv a clear picture of CDO holdings (with sub-prime debt) by banks, fund mgrs, insurance companies, etc. The ripples of fear just spread and claim 'lives' ... ...