Banks in Germany Wobble

Last week German banks bragged they weren't overly exposed to the subprime fiasco. The weekend bailout of Sachsen bank tells a different story

As recently as last week, German banks sought to convince investors that they were not overly exposed to the suddenly wobbly US mortgage market. But as the weekend bailout of Sachsen LB demonstrates -- coming just two weeks after a similar bailout of IKB Deutsche Industriebank AG -- the reassurance wasn't completely accurate.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.