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Bad Bank - Good Bank

Chancellor Merkel is using the rather modest performance of the presidency and today the heads of the EU summit to prepare for the G20 meeting (April 2, London) to London loaded. In London, the leaders want to impose "total control of the financial markets." Next week, do Merkel, Sarkozy, Brown and Co in Brussels to persuade EU-27 of their idea.
You have to be a pessimist to think now, where is the horse-trading will be hidden, should this - in itself urgently necessary anyway - come measure. And a thought is natural the "bad bank" . There would be no surprise that politics would exchange with the big Financial Institutions greater control against the acquisition of bad loans by the state (or multinational governmental Institute ions), ie by the taxpayer. Nearly every hour of financial lobbyists to be submitted concepts and requirements established. Who is currently in Google News the term "bad bank" enters has to do until he has seen all the interviews, concept presentations and comments on the subject.

It would be different. Kurt Bayer, Executive Director the European Bank for Reconstruction and Development argues in his commentary on butterfly 8 / 09 for a "good bank" and refers to a series of well-known economists who do the same. Instead of the poor, the government should buy the "good" assets from troubled banks in the crisis. The banks would lose its banking license and had the only remaining function is the handling of bad values. Advantage: lower costs and more rapid resumption of lending business. For different purpose than, previous aid packages were not used by banks for new lending, but rather to supplement their own balance sheets. The state is on quickly can make the resumption of the operation of credit guarantee market and then the "good bank" to privatize management of the crisis.

course, the approach to "good bank" is "a broken system," says Bayer. Because the consequences of the crisis, the "excessive behavior of the managers" would not be passed on to taxpayers, but to the owners of the old banks. The course will defend themselves.

Despite today in Berlin exhibited self-consciousness is anticipated therefore that the "good bank" theory is, the taxpayers but for a "bad bank" again asked to pay.