Evans-Pritchard reports in the Telegraph:
- Billions of capital left Germany for Switzerland within a few hours
- RBC Capital Markets accuses Germany of under-reporting its exposure to Greek debt by about 75%
- Short sales banned within a week of announcing Europe’s stabilization package
- Writeoffs could send German banks scrambling for capital
Suddenly Germany’s position doesn’t look so solid. An undercapitalized banking system exposed to toxic waste is enough to spook any bond investor.
