IKB Deutsche Industriebank AG, a major German financial services platform and bank, is now facing irate shareholders who blame the company for financial losses because of lack of oversight in relation to the bank’s exposure to U.S. subprime mortgages, according to an article published in Bloomberg news.
Bloomberg says shareholders, who have since been dealing with company losses that equte to three quarters of its market value, claim they were failed by a management team they trusted. The article goes on to say that IKB since experiencing a significant loss in value because of write-downs related to subprime loan exposure has received more than 8 billion euros in bailout funding from government development banks like KfW.
Click here to read the full Bloomberg News article.