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'Money That Belongs to Us All': Heads Roll in German Lending Bank Scandal - SPIEGEL ONLINE - News - International
wo managers and one division head of the German state lending bank KfW were suspended Thursday after an emergency meeting of the administrative board in Berlin, amid uproar over a suspicious €300 million ($426 million) transfer made by the bank to Lehman Brothers on Monday -- just as the New York financial institution collapsed.

Critics were calling for heads to roll, and during a press conference after the five-hour meeting German Economics Minister Michael Glos, a member of the conservative Christian Democrats, announced the three suspensions. His Social Democratic colleague Peer Steinbrück, Germany's finance minister, said the suspensions would not be "the final word."

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Fri Sep 19th, 2008 at 03:05:56 PM EST
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whether that transfer was legitimate or not (if they owed the money, then, even if Lehman is bankrupt, it can be argued that the payment had to be made. You don't always have a right to set-off, ie to cancel other obligations instead of making a payment).

What seems more ominous is the $8 billion transferred from Lehman London to Lehman NY over the ast few day before the bankruptcy. PWC, the liquidators in London, are now asking for the money back

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Sep 20th, 2008 at 05:49:11 AM EST
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The Lehman transfer appears to have been to the holding company. This in and of itself is not suspicious especially as the holding company was having liquidity and credit problems and $8bn would dertainly have helped. But now that the various units may be sold off separately, PWC is suggesting the $8bn should count towards the value of the European franchise...

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Carrie (migeru at eurotrib dot com) on Sat Sep 20th, 2008 at 08:58:46 AM EST
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Either way, so long as the money doesn't go to cover obligations that can be dumped on the US or UK public.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Sep 20th, 2008 at 12:23:57 PM EST
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