German press: Government may force banks to take government funds
According to the Handelsblatt newspaper, Germany may require banks that can’t raise capital on the markets to take state aid according to a draft of law to be taken up by the cabinet next week
Having a government fall back for German banks may take some of the sting out of whatever the EBA may announce tomorrow. Though France has short pockets as far as bailing out the banks is concerned. France risks losing its AAA rating if making too much state money available to bank bailouts.