ABS writedowns plague German banks

The failures of securitised products are largely in the past, but German banks still face massive writedowns on their loan portfolios next year, according to the Bundesbank’s latest financial stability review, published in November. The review predicted German banks would make only €10 billion to €15 billion more writedowns on their securitised asset holdings, but warned that the sluggish economic recovery meant dramatic writedowns of loan portfolios – between €50 billion and €75 billion. It add