How did the US come to the rescue of Germany at the time of financial crisis.
Answers
Answer:
Explanation:
Bankers worldwide, including in Germany, still have vivid memories of July 2007. There had been repeated reports since spring that year about nonperforming real estate loans in the US. More and more homeowners appeared unable to meet their deadlines for credit repayments as incomes stagnated or fell. Those ill-insured subprime mortgages were then bundled up with more secure credits worldwide in a bid to find buyers.
Among the buyers was the Düsseldorf-based IKB bank, which slithered into an existential crisis toward the end of 2007 after investing heavily in what later turned out to be toxic subprime mortgages. The lender thus became the German victim of the global financial crisis. It was bailed out, though, by the state-owned KfW bank, other lenders and the taxpayer.