FRANKFURT (MarketWatch) — IKB Deutsche Industriebank AG reported Thursday a consolidated net loss of 398 million euros (3 million) for the six months between April 1 and Sept. 30. That compares with a net profit of 240 million euros in the same period a year ago. The half year-results came on the back of losses on the equity and liabilities side. The provision for possible loan losses increased by 103 million euros year-on-year to 210 million euros because of “the continuing poor economic situation.” IKB, a Dusseldorf-based lender that is going through a restructuring, suffered massive losses from the subprime crisis.

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This blog discusses subprime mortgage problems. Subprime problems began when lenders offered loans to potential home owners with bad credit or credit / income that did not meet the standards of traditional lending. Subprime mortgages for people with bad credit or no credit face an uncertain future. Once the hope of many to enter into home ownership has now been corrupted both by overreaching consumers and predatory lenders. I hope to follow the aftermath of this crisis.

Mortgage Lender Implode-o-Meter






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