Publication

In May 2009, the German government decided on the draft of a law for establishing so-called “Bad Banks”. The German scheme differs substantially from the Geithner plan for the US. The Geithner plan seeks to help banks get rid of their troubled assets in order to improve their chances to attract fresh private capital; it involves, however, large risks for the taxpayers. The German scheme, in contrast, seeks to avoid benefiting shareholders at the expense of taxpayers.