I don’t know why I’m posting this while deep into the US trading session as this will probably only be of interest to any European readers out there. According to the Frankfurter Allgemeine Zeitung it is Germany’s public sector Landesbanks that would be most likely to use a “bad bank” to offload toxic assets. A nice idea, but once again it’s the snail’s pace of the process that strikes home. A meeting between German Chancelor Merkel and government officials is due to take place tomorrow, but a concrete set of plans is not expected to come out of this meeting, but a final bad bank plan should be ready by the summer break. The combination of an inflation obsessed European Central Bank and a German government focussed solely on the upcoming election, to me means that a German recovery, from a weaker position than most, will lag way behind it’s UK and US counterparts.