as the IKB story here in Germany broke nobody could believe that the solid “Mittelstandsbank” has had a problem with us subprime paper.

When you revieist the 234 page thick 2006 annual report the word subprime wasn´t mentioned once!

22 Pages were contributed to all the risk management that is just working fine…..

This rivals the AHM story.

I think it is even worse because the core business from the IKB is to provide German small and midsized companies with financing.

The US mortgage market is nowhere near their core business.

KMPG was digging into the books in early 2007 to find any risks…

They found nothing……

Maybe its because the Rhineland entities are off balance sheet vehicles ………

This story has some legs…..