A NAMA for Germany?

From today’s Eurointelligence

There is some movement in the debate on bank resolution policies in Germany. FT Deutschland has the details, according to which the government is currently favouring a model proposed by investment bank Lazard. According to one variant of this model, the government takes the toxic assets from the banks, in return for government debt obligtation, which carry ultra-low interest rates, and which the banks promise to keep on their books for a long time. The idea is that such a construction prevents spillovers into the general bond market. Another construction is a bad bank, which holds the bad assets, and which issues government-guranteed debt obligations to the good bank.