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So the key to the whole thing is probably the existence of large "hold to maturity" positions in German banking books, with maturity dates before 2013.

Banking regulators worthy of the name would require that banks set aside reserves to cover likely losses on "investment" books, of which the deterioration of the mark-to-market would be a basic indicator.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Fri Apr 15th, 2011 at 06:34:46 AM EST
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