Financial Times FT.com

Germany plans individual ‘bad banks’

By Bertrand Benoit in Berlin and James Wilson in Frankfurt

Published: January 30 2009 16:54 | Last updated: January 30 2009 20:55

The toxic assets of troubled German banks will be spun off into separate “bad banks” under a new government plan, the Financial Times has learnt.

Instead of setting up a national “bad bank”, the German government wants banks to set up individual vehicles to hold their illiquid assets.

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