Berlin has ordered an inquiry into revelations a German bank transferred hundreds of millions of euros to Lehman Brothers shortly before it went Asian shares fall amid US turmoil ...
Lehman plunges on funding fears ... bankrupt.
The German state sponsored KfW Bank for Reconstruction transferred 300 million euros to Lehman Brothers just as the US bank applied for insolvency protection last weekend. The payment was part of a long-standing contract, but it has angered the German goverment. KfW is not allowed to transfer money to bankrupt companies or financial entities. It reportedly tried to cancel the transfer, but without success. With Lehman Brothers now being broken up, it's by no means clear whether any of the 300 million euros of German taxpayers money can be recovered at all.
(Deutsche Welle)
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