IKB Deutsche Industriebank expects losses between €600 million ($815.66 million) and €700 million ($951.61 million) this fiscal year following investments in U.S. subprime mortgage market securitizations, reports Dow Jones. IKB recently received a liquidity injection from KfW valued at €8.1 billion ($11 billion) and another €6.1 billion ($8.3 billion) worth of credit from a group of German banks. IKB said that is has enough liquidity for the next six months and that it would have no need to issue additional capital. IKB also said yesterday that it would not be focusing on international investing any longer. Instead the company will focus on domestic corporate financing, leasing and private equity, structured finance and real-estate financing.
IKB Expects Almost $1 Billion In Losses