Financial Times FT.com

KfW probe

Published: September 18 2008 03:00 | Last updated: September 18 2008 03:00

KfW, the German state-owned development bank, is investigating how it came to make a €300m payment to Lehman Brothers on Monday, increasing taxpayers' exposure to the credit crisis just as the US investment bank was collapsing into bankruptcy.

People familiar with the payment suggested it was part of a currency swap agreement of a type that KfW conducts frequently with international banks.

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