Bank’s going bust in Dublin
German banks have had to make €17.3 billion ($23.3 billion) available to the Saxony state bank (.de) to cover Dublin-based affiliate/conduit Sachsen LB Europe(.ie). That affiliate (or off-balance-sheet investment vehicle) had a fund called “Ormond Quay” which had invested in “asset backed commercial papers” and got into liquidity problems. It has two other funds also - “Georges Quay” and “Sachsen Funding” which are not in trouble (yet).
Via Spiegel: Banks in Germany Wobble and Sachsen LB Europe Statement
IRISH BANK COLLAPSES
The crisis claimed its first Irish casualty last week with the collapse of the Dublin-based firm, Structured Credit Company (SCC), with liabilities of $350 million (€259.5 million). - Irish Times
Speaking at the company’s launch earlier this year, the minister for finance Brian Cowen had described SCC as ‘‘a flagship project’’ that would ‘‘help to underpin Ireland’s standing as a centre of excellence for the location of international financial services’’ - Sunday Business Post: Dublin finance firm falls victim to credit crunch
It’s not Brian’s fault of course