Ghost of Nazi Past Haunts Austerity-Gripped Europe

Ghost of Nazi Past Haunts Austerity-Gripped Europe

Denis Doyle/Bloomberg

Creditanstalt in 1931, like Spain’s Bankia now, was created by mergers with lenders weakened by toxic loans and capital shortfalls. After Creditanstalt failed, the government stepped in to prop it up, fatally hurting its own credit.