COMMENT It was late August in Leipzig and, for German banking, one of the most humiliating moments in recent times.
Jochen Sanio, the country’s top bank regulator, had journeyed to the east German city to deal with an urgent problem that was threatening the rest of the sector with crisis. In the midst of the global credit squeeze, Sachsen LB, a provincial bank set up 15 years ago, had run out of ready money. A bankruptcy could create chaos throughout the sector.
