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Consequences of Debt Restructuring: What Would a Greek Haircut Mean for Germany? - SPIEGEL ONLINE - News - International
It's the worst-case scenario: Greece no longer able to get loans, with creditors having to wave goodbye to a chunk of their money. But what would it mean for Germany? Would the state have to bail out the banks again, and would private investors also suffer badly? SPIEGEL ONLINE takes a look at the likely consequences.

...The consequences of a debt write-off against the government in Athens would be manageable for Germany. At the moment, some €25 billion in Greek debt is held by Germany's commercial banks and the so-called "bad banks" set up to take on toxic assets. This debt takes the form of either Greek sovereign bonds in their portfolios or loans made to the Greek government.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Fri May 27th, 2011 at 03:30:09 PM EST
[ Parent ]
The general sense was that the same banks that already required bailouts also have big irish/spanish/portugese exposure that would look bad after greek default.
by rootless2 on Fri May 27th, 2011 at 08:30:15 PM EST
[ Parent ]
There is a table in the article showing that. The largest exposure is KfV's, due to the first Greek bailout, then the "bad bank" of the former real estate casino bank HLB, then Deutsche Bank already just a fraction of that. Of the Landesbanken, only the "bad bank" of WestLB and Baden-Württenberg's bank have relatively high exposure. So, as good as they are at spreading panic, I doubt that the neoliberals will have the opportunity to produce a crisis large enough to force the sell-off of the Landesbanken to commercial banks.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sat May 28th, 2011 at 04:35:25 AM EST
[ Parent ]


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