German banks get to grips with a new lending reality

If you were looking for a story that encapsulates the problems that have hobbled the German banking industry in recent years, you could do worse than an anecdote recounted by one former forex dealer. The dealer, working for an investment bank in Frankfurt during the early 1990s, hoped to win business from Swedish/Swiss engineering giant ABB. His hopes were high. Not only was the bank offering almost suicidally low spreads of 2 basis points, but ABB had just made one of his old colleagues the