Tuesday, October 16, 2007

Citi keeps lending: $500m to IKB

Citigroup, prime mover behind Wall Street’s master conduit scheme, may be facing trouble, and big declines in earnings, but it’s still lending. The bank has just leoaned about $500m to a structured investment vehicle run by IKB, the German bank that was bailed out in July, it emerged on Monday. Citi has taken a reserve of almost $100m against the loan.

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