Head of German bank KfW resigns amid problems at IKB: bank

0 Comments | AFP, April, 2008

FRANKFURT (AFP) — The head of German state development bank KfW, Ingrid Matthaeus-Maier, has resigned, the company said Monday, amid chronic subprime-related problems at its affiliated business lender IKB.

Matthaeus-Maier will remain on the board until September when she turns 63, a statement said.

"Turbulence regarding the IKB rescue plan and persistent speculation about my (position) in the past months have made it impossible for me to devote all my strength to my work," she said in a statement.

Her contract was originally to run until June 2009.

KfW currently owns roughly 43 percent of IKB, a specialist in loans to small- and medium-sized business that almost went bankrupt after investing heavily in securities backed in part by high-risk US...