The executive committee of state-owned KfW Bankengruppe’s supervisory board has reached an agreement regarding its stake in subprime casualty IKB, German finance minister Peer Steinbrueck said, reports the WSJ. German economics minister Michael Glos, chairman of the supervisory board, said the committee had “unanimously supported” the proposal of the KfW board. IKB was the first prominent casualty of the US subprime mortgage meltdown that began last summer, with around €8.5bn ($12.6bn) provided in three rescue packages involving the German government, via IKB’s main shareholder, KfW, and the German banking sector. KfW owns a 45.5% stake in IKB. KfW has been trying to sell its stake in the beleaguered bank since it got hit by the crisis. KfW’s stake in IKB will rise to 90.8% this fall as part of an already agreed capital increase.

This entry was posted by Gwen Robinson on Thursday, August 21st, 2008 at 5:24 and is filed under Capital markets, People. Tagged with IKB. Edit this entry.