Germany's co says 'limited' exposure to US subprime loans
Monday, 13 August 2007
BERLIN, Aug 12 (AFP): German bank WestLB has a 1.25 billion euro (1.7 billion dollar) exposure to subprime-related securities through subsidiaries, a spokesman said yesterday.
Hans Obermeier called the investment "relatively limited" and said the securities were highly rated.
Some 98 per cent were rated "A" or better, while 87 per cent were rated "AA" or better, he said.
"The commitment is relatively limited, and its rating is very high, which signals that we do not have to be too concerned," said Obermeier.
"We are not under pressure to sell. We have spoken about it with investors and rating agencies."
As a comparison, troubled German bank IKB (Deutsche Industriebank) and its affiliates or associates extended a total of 7.8 billion euros (10.6 billion dollars) in the US mortgage sector, according to the weekly Der Spiegel to be published Monday.
IKB specialises in funding small and medium-sized companies but its involvement in the US property market has brought it close to collapse.
Hans Obermeier called the investment "relatively limited" and said the securities were highly rated.
Some 98 per cent were rated "A" or better, while 87 per cent were rated "AA" or better, he said.
"The commitment is relatively limited, and its rating is very high, which signals that we do not have to be too concerned," said Obermeier.
"We are not under pressure to sell. We have spoken about it with investors and rating agencies."
As a comparison, troubled German bank IKB (Deutsche Industriebank) and its affiliates or associates extended a total of 7.8 billion euros (10.6 billion dollars) in the US mortgage sector, according to the weekly Der Spiegel to be published Monday.
IKB specialises in funding small and medium-sized companies but its involvement in the US property market has brought it close to collapse.