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Made in Germany | "Bad Banks" Blessing or Curse?

838 views · Published 11 February 2009 · 5:03 · Indexed 12 November 2026

Channel: DW News · 2009 · News & Politics

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No one knows how many toxic assets are on German banks' balance sheets. But it's clear their books need to be cleaned up if the nation's banking industry is to recover.One solution might be to create a bad bank to dispose of toxic assets -- and possibly even make a profit on them. But the risks are enormous. And for weeks there's been debate about who would be responsible for the bad bank -- the government or financial institutions. Our reporter Patrick Benning talked to supporters and opponents of this radical solution.

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