German government explores idea of multiple "bad banks"

02/3/2009 | Der Spiegel (Germany) (English online version)

Instead of one large "bad bank" to absorb troubled assets of financial institutions, the German government is looking into a plan in which numerous privately held bad banks would be created. The banks' shareholders, instead of taxpayers, would vouch for risks. The government would invest in the more promising areas of the banks. The plan is expected to be politically appealing and is already receiving widespread support.

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Der Spiegel (Germany) (English online version)

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