Solid?

Posted by Herman | January 21, 2009 | permalink

Germany has a reputation to lose: solidity en quality is expected. Therefore the latest revelation of Der Spiegel is sobering.

All the country’s top commercial banks and the publicly owned regional banks known as Landesbanken took part in a survey which revealed that the banks hold so-called “toxic” securities totalling just under €300 billion  of which only a quarter has been written off.

The Finance Ministry in Berlin estimates that the entire German banking sector is still holding risky securities totalling up to €1 trillion. 

The value in their books is imaginary, nobody has any idea what the real worth is. 

To put this in perspective: the debt of the German federal government is approx.€1 trillion.
Shocking.
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About Herman

Herman Wagter is one of the founders and co-editor of Dadamotive. His work as interim manager and consultant (Citynet Amsterdam/Fiber-to-the-Home, Platform Sustainable Mobility) has involved him directly in the impact of hyperconnectivity and sustainability on society. As an independent agent and "mobile warrior" he has experienced the pro's and con's of how organizations and projects can be structured, and what the effects on the final result can be. In his opinion we are entering an era of profound change, driven by these fundamental forces. Following the trends, discovering the fun and debunking the half-truths is a passion he likes to share with others.
Posted in: Human value.

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