Krauts Find out What It’s like to be on the Other Side of the Killing*

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KB Deutsche Industriebank became the first German victim of the subprime situation today, saying that losses in the US sub-p mortgage market would translate to “significantly lower” earnings than the previously predicted €280m ($383m) for its 2007-2008 fiscal year. The profit warning caused shares of IKB to plummet 16.7% to €17.89, its lowest level since December 2003. Unlike others touched by the housing rough patch, IKB choose to hold those responsible accountable for their actions, and fired its chief executive. (Germans aren't exactly a "3-strikes" people).
Simon Adamson, an analyst at CreditSights, told Reuters, "This announcement from IKB will confirm the fears of a lot of investors that we don't really know what the scale of the problem is," which is comforting.
Subprime woes claim first German victim [FT via MSNBC]
U.S. mortgage woes claim first German victim [Reuters]
*We kid the Krauts.

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