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White Paper

Die deutsche Bad Bank-Gesetzgebung / The German Bad Bank Act

7 August 2009
Mayer Brown White Paper
The Supplement to the Financial Markets Stabilization Act became effective on July 23, 2009 (as announced in the Federal Law Gazette I, No. 43/July 22, 2009, p. 1980). It governs the so called German Bad Bank, which was designed to give German banks the opportunity to dispose of risk positions and to relieve their balance sheets. In the course of the legislative procedures numerous amendments have been made, which are supposed to increase the Bad Bank’s practical effect and promote the financial markets’ stabilization.

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