German banks in 'US$1 trillion exposure'
26-04-2009
Germany's banking system is exposed to more than US$1 trillion worth of "toxic" or risky assets, news media in Europe's largest economy said, citing a confidential financial watchdog report.
The publication of the report was condemned by the watchdog, which said it is filing a formal complaint and warned against any "erroneous interpretation" as the German government ponders action to prop up its troubled economy ahead of September general elections.
Senior government ministers have held talks on a plan to help lenders clean up their balance sheets, possibly by allowing them to park difficult loans in their own individual mini "bad banks".
