Journal # Tdt: Wat is a Bad Bank? # 13.05.2009 10 UTC

Welcome back. Germany's efforts to prop up the country's banking sector have so far failed to restore enough liquidity to the system. Many financial institutes are still saddled with billions in risky investments, some of which are worth nothing on the open market. For weeks now, legislators and finance experts have been talking about whether this problem could be solved with toxic asset repositories that have come to be known as 'bad banks'. Now the German cabinet HAS approved a draft law that would pave the way for such a measure.