Why Germany Might Not Be Bluffing in Greece

German banks are much less exposed to a Greek exit than they once were.

Is Wolfgang Schaeuble serious?

Photographer: Krisztian Bocsi/Bloomberg

As Europe's high-stakes debt negotiations with Greece reach an impasse, Germany has appeared surprisingly willing to drive the country out of the euro, regardless of the potentially dire repercussions for Italy, Portugal, Spain and the entire currency union. One possible explanation for Germany's brinkmanship: Its banks have a lot less to lose than they once did.

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