Bank chief warns of German banking crisis - MarketWatch

Bank chief warns of German banking crisis - MarketWatch: "Bank CEO warns of German crisis By Steve Goldstein, MarketWatch Last Update: 11:13 AM ET Aug 21, 2007 PrintPrint EmailE-mail Subscribe to RSSSubscribe to RSS DisableDisable Live Quotes LONDON (MarketWatch) -- The chief executive of one of Germany's largest state-backed banks warned that foreigners were increasingly loath to extend credit to financial institutions in Europe's largest economy, which could spark a crisis. 'We sense reluctance on the part of foreign partners to extend credit to German banks,' WestLB CEO Alexander Stuhlmann told journalists on the sidelines of a bank event, according to wire service reports. 'If we have a banking crisis in Germany with other countries cutting us off, then other banks will also face difficulties.' His comments come days after a German lender, SachsenLB, said it required a credit line of 17.3 billion euros ($23.2 billion) because of the investments it had made in securities affected by the U.S. subprime mortgage crisis. IKB Deutsche Industriebank (DE:806330: news, chart, profile) required a similar bailout. Germany's finance minister, Peer Steinbrueck, was more optimistic, saying there are no signs of the German economy being affected. 'I believe those involved have the situation in hand,' he said. Meanwhile, a poll of insti"