German bank in Lehman embarrassment
The German government demanded a swift explanation Wednesday of an apparent technical mistake that led a state-owned development bank to transfer euro300 million (US$426 million) to Lehman Brothers shortly before its bankruptcy.
By Agencies |
BERLIN: The German government demanded a swift explanation Wednesday of an apparent technical mistake that led a state-owned development bank to transfer euro300 million (US$426 million) to Lehman Brothers shortly before its bankruptcy.
The KfW bank declined to comment in detail on the transfer, citing an ongoing internal audit, but said the transfer was made in a swap deal of a kind that is generally based on long-term contractual obligations.
Finance Ministry spokesman Torsten Albig said the news was ``more than surprising and annoying, and we expect a very quick explanation of a technical error that, for us, is inexplicable.'' He called for unspecified ``consequences.''
Lehman made the biggest bankruptcy filing in U.S. history on Monday. Germany's Handelsblatt daily reported that the KfW transfer was made on the same day.
KfW's administrative board was due to meet on Thursday, when it may consider the issue.
The KfW bank declined to comment in detail on the transfer, citing an ongoing internal audit, but said the transfer was made in a swap deal of a kind that is generally based on long-term contractual obligations.
Finance Ministry spokesman Torsten Albig said the news was ``more than surprising and annoying, and we expect a very quick explanation of a technical error that, for us, is inexplicable.'' He called for unspecified ``consequences.''
Lehman made the biggest bankruptcy filing in U.S. history on Monday. Germany's Handelsblatt daily reported that the KfW transfer was made on the same day.
KfW's administrative board was due to meet on Thursday, when it may consider the issue.
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