Germany rejects ‘bad’ bank plan

View an online version of this email here.  All times are London time: Friday Jan 30 2009 Breaking news Germany rejects 'bad' bank plan The German government has rejected the idea of setting up a "bad bank" to park toxic assets held by the country's financial institutions and is instead pushing for an industry-led solution that could see each bank split itself up between a "good" and a "bad" bank. Under the plan, the banks would set up individual "bad banks" to hold their illiquid assets. These would be issued with state guarantees by the bank rescue fund set up in October by the government. Once rid of their toxic assets, the banks could apply to the fund for fresh capital. The government has come under pressure to modify its October rescue package for the banking sector, which has failed to restore confidence in the banks. Read more » ABOUT THIS EMAIL You have received this email because you have signed up for this briefing on FT.com Manage subscriptions | Unsubscribe | Change your email address Change whether you receive this email as HTML or plain text | Forward this email to a friend Privacy policy | Advertise | Contact © Copyright The Financial Times Ltd 2009. "FT" and "Financial Times" are trademarks of the Financial Times. The Financial Times Limited, registered in England and Wales number 227590. Registered office: Number One Southwark Bridge, London SE1 9HL. VAT number GB 278 5371 21.