Germany's lower house of parliament, the Bundestag, has passed a bill for the creation of "bad banks" to absorb toxic assets and clean up balance sheets at financial institutions caught up in the financial crisis. The bill is essentially aimed at unfreezing credit markets and freeing commercial and state-owned banks of their risky and non-core assets. This will be achieved by shifting as much as 230 billion euros ($322 billion) worth of toxic assets held by banks to the so-called bad banks. The plan will involve exchanging items such as asset-backed securities and collateralized-debt obligations for state-guaranteed bonds, for which banks will be charged a fee.
The bill is essentially aimed at unfreezing credit markets and freeing commercial and state-owned banks of their risky and non-core assets.
This will be achieved by shifting as much as 230 billion euros ($322 billion) worth of toxic assets held by banks to the so-called bad banks.
The plan will involve exchanging items such as asset-backed securities and collateralized-debt obligations for state-guaranteed bonds, for which banks will be charged a fee.
as in, 'i used to work in a good bank, but now i work in a bad one for double the pay... dirty job, but someone had to do it!'
seriously mystified. ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
