German State-Owned Banks on Verge of Collapse
February 22nd, 2008Via: Spiegel:
The German government has had to bail out state-owned banks with taxpayers’ money after their managements recklessly gambled away billions on subprime investments. But if a state-owned bank were to go under, the consequences could be disastrous for the whole economy.
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The situation for Germany’s public banks has become so dramatic that it threatens to topple what has been one of the key pillars of the country’s banking system. The state-owned banks are supposed to bail each other out when necessary, but the problem is that many are in trouble themselves and hardly in a position to help their peers. And things could get even worse.
Posted in Economy | Top Of Page
I have always thought the 20th century was about trying to contain Germany’s strength and now the EU, another part of the plan, makes it difficult for the Germans to save their F’ed banks.
By the way, have you ever read Elaine’s incredible writing?
http://elainemeinelsupkis.typepad.com/money_matters/2008/02/reserve-ratios.html
http://snipurl.com/20a0e [elainemeinelsupkis_typepad_com]