The Hidden Cost of Saving the Euro ECB's Balance Sheet Contains Massive Risks

While Europe is preoccupied with a possible restructuring of Greece's debt, huge risks lurk elsewhere -- in the balance sheet of the European Central Bank. The guardian of the single currency has taken on billions of euros worth of risky securities as collateral for loans to shore up the banks of struggling nations.
Von Matthias Brendel und Christoph Pauly
European Central Bank President Jean-Claude Trichet: How safe is his bank's collateral?

European Central Bank President Jean-Claude Trichet: How safe is his bank's collateral?

Foto: FABRICE COFFRINI/ AFP/Getty Images
Translated from the German by Christopher Sultan