"On Friday, the German daily Süddeutsche Zeitung (SZ) leaked a bombshell - a confidential report by Bafin, the Federal Financial Supervisory Authority, found that German banks were sitting on over 800 billion euros in toxic assets...This new account has been all over the news in Germany because Germans are becoming quite frightened about the health of their banking system and are angry because the German economy was largely absent from the bubbles of the past decade. Germans are beginning to ask quite openly why banks like Commerzbank and the state-owned land banks as well as institutions like Hypo Real Estate are being rescued with taxpayer money."If the populace is just beginning to demand answers they are a long way from resolution of the problem. Perhaps the alleged absence of bubbles in the German economy was actually reckless lending preventing precipitous decline in the health of Germany's economy. German banks have been highly leveraged...as I have mentioned here several times.
Sunday, April 26, 2009
Germans realize their banking system is in trouble
Credit Writedowns tells us that