http://www.forbes.com/markets/feeds/afx/2007/07/31/afx3971357.html shows how the dominos fall when one is pushed aside. my question:

 

How are your countries banks affected when the sub prime mortgage market disturbs the scene more and more US defaults are registered? or do you believe the management is just bull****ting  because they are incompetent anyway and use it as an excuse?

Richard:

I am only "surprised" that a government-owned Banking Institute as KfW (Kreditanstalt für Wiederaufbau) provide the liquidity line to a private Bank Corporation as IKB to backup the default of RFCC.

It could be a "tactic" transaction as you already said or the Fund is in "real" trouble. We will never know this for sure.

But as far as I know KfW is providing Funds to social economic projects as also to environment included "green" Projects (Example Renewable Energy). I did had the opportunity to talked with the represent in Mexico City some years ago who explained to me in details the proceed to obtain Funds.

This is my personal experience that I want to share herewith.

Thomas

Richard, do you mind elaborating on your comment?

Quote:

or do you believe the management is just bull****ting because they are incompetent anyway and use it as an excuse?

End of quote.

They could use the excuse to present the market as the reason for a loss which is essentially their own mistake and misconception of doing business outside their scope.

It is not so much the banks as the fund managers that take a hit.

Many invest in the companies that are effected such as Bear Sterns etc. With some funds losing as much as 20 to 25% of their value as a result of this markets collapse.

Offshore Loan Centre
Global Financial Solutions
http://www.olcfinance.com

That's the Weblink about the Bear Stearns Problems:

http://news.yahoo.com/s/ap/20070801/ap_on_bi_ge/bear_funds;_ylt=AihxjIdi2nSbpYW6hEZYjf6yBhIF

DDrep
Thomas

This is the situation in Mexico accordingly to the first post of Richard. (sorry only in spanish available)

http://www.eluniversal.com.mx/finanzas/59210.html

Greetings
DDrep