Kommunalkredit: Search for Buyer Goes on

People ♦ Published: May 5, 2012; 19:03 ♦ (Vindobona)

In 2008, the former interest of VBAG was nationalized. The market environment would be too insecure, CEO Steinbichler says.

Kommunalkredit: Search for Buyer Goes on / Picture: © Vindobona.org

Despite its status as “good bank”, Kommunalkredit had to record losses of € 148.8m in 2011. This was caused by the write-off of Greek sovereign bonds, which totaled € 176.3.m. For market observers, this was surprising, as it was expected that all risky assets were shifted to KA Finanz. The nationalized KA Finanz is the “bad bank” of Kommunalkredit.

As a result, among…