Bad bank (also used in German, more rarely Auffangbank and Abwicklungsanstalt)

A public hive-off vehicle (state-run rescue company) for bad loans and toxic securities that has been proposed in various cases, especially in Japan and Sweden. This company could bundle the receivables of distressed institutions, package them as securities and place them on the credit market. Ultimately, however, taxpayers would be asked to pay for the mismanaged businesses of banks. – In the wake of the subprime crisis, a fund with all the characteristics of a bad bank was set up in the USA in the fall of 2008. – See bad bank model, German, bad bank problem, fundamental, balance sheet adjustment, ECB sin, Financial Market Stabilization Act, Mittelstandsbank, risk capital, debt repayment pact, European, sovereign wealth fund, securitization, confidence bubble, waterfall principle.
– Cf. ECB Monthly Bulletin of July 2009, pp. 75 f. (measures in the course of the bad bank model in their impact on public finances), ECB Monthly Bulletin of March 2010, pp. 25 ff. (balance sheet items affected by bad banks; overviews), ECB Monthly Bulletin of January 2011, pp. 24 ff. (effects of transferring assets to bad banks; overviews; also important references in the notes).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/