German banks: Quantitative teasing

Germany’s bad bank plan isn’t off the ground yet but there’s already massive confusion about its scope. A leaked memo from financial regulator Bafin has sparked fears of just how many assets might wind up involved. A German newspaper report put the Bafin-derived figure at E816bn – or more than a quarter of the country’s economic output. According to the memo, Hypo Real Estate alone is holding E268bn of such problem assets, and Commerzbank another E101bn. The regulator thinks the figures are bei...