$1 tln at risk in German banks: report
BERLIN (AFP) - - Germany's banking system is exposed to over one trillion dollars' worth of "toxic" or risky assets, news media in Europe's largest economy said Saturday citing a confidential financial watchdog report.
Within the 816-billion-euro headline sum (1,080 billion dollars), 355 billion euros are held in the network of Germany's regional state banks, according to the document revealed by the Suddeutsche Zeitung newspaper and the online edition of Der Spiegel magazine.
Another 268 billion euros is attributed to the troubled Hypo Real Estate bank, which on Friday moved a step closer to becoming Germany's first full nationalisation since 1949.
Berlin has so far provided more than 100 billion euros' worth of state guarantees in an effort to keep Hypo Real Estate afloat and recently passed an emergency bank nationalisation law giving it the power to seize investors' shares by force if necessary.
Private banks get off relatively lightly in the report, with 139 billion at risk at the merged Commerzbank/Dresdner Bank, which has received combined state bailout aid amounting to over 18 billion euros to-date.
The publication of the report was condemned by the Bafin watchdog, which said it is filing a formal complaint and warned against any "erroneous interpretation" as the German government ponders action to prop up its troubled economy ahead of September general elections.
BERLIN (AFP) - - Germany's banking system is exposed to over one trillion dollars' worth of "toxic" or risky assets, news media in Europe's largest economy said Saturday citing a confidential financial watchdog report.
Within the 816-billion-euro headline sum (1,080 billion dollars), 355 billion euros are held in the network of Germany's regional state banks, according to the document revealed by the Suddeutsche Zeitung newspaper and the online edition of Der Spiegel magazine.
Another 268 billion euros is attributed to the troubled Hypo Real Estate bank, which on Friday moved a step closer to becoming Germany's first full nationalisation since 1949.
Berlin has so far provided more than 100 billion euros' worth of state guarantees in an effort to keep Hypo Real Estate afloat and recently passed an emergency bank nationalisation law giving it the power to seize investors' shares by force if necessary.
Private banks get off relatively lightly in the report, with 139 billion at risk at the merged Commerzbank/Dresdner Bank, which has received combined state bailout aid amounting to over 18 billion euros to-date.
The publication of the report was condemned by the Bafin watchdog, which said it is filing a formal complaint and warned against any "erroneous interpretation" as the German government ponders action to prop up its troubled economy ahead of September general elections.
