Lone Star Owned German Bank IKB Exposed to Collapse of UK Mortgage Firm MFS IKB's entanglement with MFS dates back to 2008, when it invested in a mortgage backed securities fund managed by MFS.
This arrangement, which allowed IKB to share some of the risk associated with these investments, has since become clear was a recipe for disaster.
The German bank's exposure to MFS began innocently enough: in 2007, it invested approximately €1 billion in a mortgage backed securities fund managed by MFS.