German banking association says Greece will restructure

The president of the German banking association said Greece will not get through this crisis without debt restructuring, and he called for stress tests to specifically include a component of sovereign default on the banking book. This is an interesting comment, as reported in FT Deutschland, but remember that the association only encompasses the private-sector banks. Most of the toxic waste in Germany is located with the state sector banks, such as HRE and WestLB.