Übler Geruch unter Deutschlands Teppich

gerade in von Forex Live

Germans struggling to clear the clutter

German banks are reportedly sitting on over €600bn in unwanted assets.

According to a Reuters report banks are trying to shift €637bn in real estate, shipping loans and sovereign debt.

The banks were forced to put aside risky assets into no-core banking units following the clean up of balance sheets.

The banks wanted to offload these assets quicker but were fearful of being drawn into a firesale which would have meant larger write downs (Ebay anyone?).

It sounds like one big smoke and mirrors act. The German banks have been some of the most active in taking the crap off the balance sheet and hiding it away under the stairs. The fact that there is a boatload of it and is still gathering dust should get more headlines than upbeat reports of banks doing well and the system getting repaired.

Oh well, let’s just sweep it under the carpet as usual.

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