German banks' exposure to indebted neighbours raises red flags

06/10/2010 | Risk.net (subscription required)

Economists, investors and industry observers say German banks have considerable exposure to debt-ridden southern European countries, a situation that could become problematic. "My big worry for Germany is southern Europe, and the consequences for the German banking sector if they did let Greece default," said Michael Burda, a professor of economics at Berlin's Humboldt University.

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