ikb

IKB was one such but, when it came to this deal, Goldman's message was: "We're taking care of our balance sheet and you're on your own. "

Fast forward to Dusseldorf in 2007 and German banks from across the public and private sphere have stepped up to the plate to rescue IKB .

It definitely embraced them with Abacus, keeping IKB in the dark both about Paulson and its own view of mortgage CDOs.

IKB, one of the first lenders to collapse in the credit crunch, was largely the author of its own misfortune.

The knowledgebase approach can be used to instantiate the ITF and organize these components into the integration knowledgebase (IKB).

Goldman didn't tell IKB who was on the other side of the trade, or the extent to which Paulson influenced selections.

It treated IKB like a trade counterparty while Paulson got the privileges associated with a client.

IKB's problems appear to have arisen from a specific set of bad investments, not any domestic woes.

The German bank IKB was an early victim.

The SEC says the relationship was not disclosed to Goldman's clients, ACA Financial Guaranty and the German bank IKB.

Goldman says that ACA and IKB were sophisticated investors and that disclosure of Paulson's role was not required.

This threatened to trigger IKB's collapse, until KFW, the state-owned German bank, stepped in and offeredan ? bn credit facility.

In Frankfurt, however, the Bundesbank stresses the differences between the cases of IKB and Sachsen LB.

When the smoke cleared, Paulson made a profit of about $1bn while IKB lost $150m and had to be bailed out that August.

Goldman can argue, and it does, that it did not have any fiduciary duty to IKB to tell it any such thing.

"IKB had an army of PhD types to look at CDO deals and analyse them, " says one CDO investor.

But the evidence that Goldman and Mr Tourre actively misled IKB about the transaction, as opposed to not disclosing everything, is patchy.

Unfortunately, that has been too late to save IKB Deutsche Industriebank, a small German lender, from a messy bail-out.

That investor was Paulson but both Goldman and ACA made investments alongside IKB that lost money.

The CDO had three investors: Paulson, securities firm ACA Capital Ltd. and German bank IKB Deutsche Industriebank AG.

IKB is believed to be looking to bring a private lawsuit against Goldman.

As a result, the SEC claims, Goldman's statement to IKB was false, misleading, and fraudulent.

Yet even by these dismal standards, IKB stands out.

IKB Deutsche Industriebank had put money into American debt securities, including some based on subprime loans.

Other German banks, led by the government-owned KfW Group, agreed to provide almost 5 billion dollars to aid IKB.

The outsiders this time were the small German banks such as IKB.

Mr Ortseifen is on trial for breach of trust but has said Deutsche helped spark a loss of confidence in his bank in July 2007.

Chongqing IKB Psychological Culture Consultants Co. , Ltd

According to the SEC complaint, Goldman reached out to IKB to buy some mortgage related products. [ID: nN16123404]