Tuesday, 23 February 2010

German deficiency

I note that Lord Mandy has a new plan to create a "KfW for the UK", which was given a big push by friends at the Sunday Telegraph at the weekend. But is a state-run investment bank really such a good idea?

German state-owned banks such as West LB have suffered their fair share of problems (try asking them about Robin Saunders), while KfW is best known for transferring Eu300m to Lehman Brothers on the day it collapsed.

That little gem earned it a new nickname: Germany's dumbest bank.

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