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Bad banks

Bo Lundgren - vår nye hjälte
inbjuden att inför ett kongressutskott berätta hur vi gjorde när vi räddade (förstatligade) banker
Rolf Englund blog 2009-03-13

Germany’s government is finalising “bad bank” plans to deal with toxic financial assets
as part of efforts to restore confidence to the banking system that also include a
takeover offer launched this week for Hypo Real Estate, the stricken property lender.
Financial Times April 10 2009

Peer Steinbrück, finance minister, is expected to reveal by the end of April how he intends to help German banks separate unwanted or heavily impaired assets from their balance sheets, thereby freeing up capital and cutting the risk of further writedowns.

The ministry declined to comment on German press reports that €200bn ($262bn) in guarantees would be made available to banks.

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Tyskland

The success of the Irish government’s plans to set up a “bad bank” rests on details that have not yet been finalised.
The loans have a nominal value of €80bn-€90bn – about half of Ireland’s annual economic output.
Financial Times April 8 2009

The government’s plan is to remove all land and property development loans from the banks’ balance sheets and replace them with government bonds

The loans have a nominal value of €80bn-€90bn – about half of Ireland’s annual economic output. However, the government plans to buy them at much lower prices.

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Ireland

Celtic Tiger is an endangered species
Financial Times editorial 8 april 2009