Model based on 'dumb' example
Published 18/10/2010 | 05:00
THE Labour Party is modelling its new business bank proposal on 'Germany's dumbest bank'.
The German bank on which Labour is basing its blueprint gave Lehman Brothers €300m on the very day the US bank went bust.
The move earned the bank the nickname of 'Germany's dumbest bank'.
Labour Party leader Eamon Gilmore says the party's Strategic Investment Bank is modelled on KfW bank in Germany.
Labour didn't mention the infamous incident when it declared its Strategic Investment Bank had been modelled "on the hugely successful KfW bank, based in Germany".
"KfW is the sixth largest bank in Germany, one fifth the size of Deutsche Bank, and one of the largest capital issuers in Europe," the party said.
KfW is 80pc owned by the national government and 20pc by German states. It was established in 1948 to finance reconstruction projects.
Labour insist its Strategic Investment Bank would have "no political interference".