ASSESSMENTS

Germany: Implementing the 'Bad Bank' Plan

May 14, 2009 | 15:32 GMT

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Summary

Germany's government agreed on a "bad bank" plan on May 13, which will allow private sector banks to get rid of "toxic assets." However, the plan ignores the largest portion of debt — belonging to Germany's Landesbanks — and will not protect Germany's banking sector from the looming recession.

Germany's plan to resolve its banking woes leaves major issues unresolved. ...

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