Banks prepare for 60% Greek loss

GERMAN banks are preparing for losses of as much as 60% on their Greek government debt holdings as European officials push for more private-investor involvement in a rescue of the debt-stricken country.

The country’s banks held a conference call this week and participants discussed the potential for losses on Greek bonds of between 50% and 60%, according to three people, who declined to be identified because the talks are private.

Deutsche Bank AG (DBK) chief executive Josef Ackermann, who led talks in July when Europe’s banks and insurers agreed to a voluntary loss of about 21%, said he’ll go to Brussels next week to discuss the potential for a bigger reduction.