Head of German state bank resigns over banking crisis
The head of Germany's state-owned KfW development bank resigns as a result of financial market crisis that has severely dented performances at German banks.
7th April 2008
Berlin - Ingrid Matthaeus-Maier, 62, has resigned with immediate effect over the troubles at the IKB Deutsche Industriebank, in which the KfW holds 43 per cent, according to information received by Deutsche Presse-Agentur (DPA).
KfW board member Juergen Koppelin simultaneously told DPA that the IKB would need an additional 1.8 billion euros (2.8 billion dollars) in bailout money, on top of the 8.5 billion euros it has already received.
The IKB has been badly hit by its speculative trading in the US subprime mortgage market and has had to be bailed out repeatedly. The KfW has stumped up 6 billion euros so far.
The IKB is mainly involved in providing long-term finance for medium-sized German companies.
The KfW was set up after World War II as a state-backed financial institution aimed at providing funds for rebuilding the German economy.
It had long been rumoured that Matthaeus-Maier's contract would not be renewed when it came up for renewal next year.