Saschen chief resigns owing to subprime losses

Head of the German bank Sachsen LB, which suffered heavy losses linked to Sub prime home loans in US stepped down today in the wake of the mortgage crisis. Mr. Seuss chose to relinquish his responsibilities as CEO on September 15th while two other directors have been sacked for the same.

Subprime mortgages are high risk mortgages which are given out to borrowers with poor credit history. Sachen LB developed severe liquidity issues and was unable to cover its liabilities due to the heavy weightage of investments in US sub prime home loans