Article Tools

KA Finanz: Disaster Was Avoidable

Published: March 12, 2012; 16:18 · (Vindobona)

The „bad bank“ of the nationalized bank Kommunalkredit considered selling Greek sovereign bonds in spring 2009. Last week, KA Finanz wrote off € 423m.

KA Finanz: Disaster Was Avoidable / Picture: © Flickr

The publicly owned KA Finanz recorded € 423m in write-offs of Greek CDS. Losses would reach only € 16m, if credit default swaps would have been sold in 2009. The supervisory board considered to sell the Greek exposure in April 2009. However, the board expected more stable markets and did not sell the CDS exposure then. Losses were regards as too high.

KA Finanz is affected by…

This article includes a total of 237 words.

or Log In