Austrian Lender Spins Off CDS

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Austrian Lender Spins Off CDS

Kommunalkredit, an Austrian municipality lender nationalized by the government, has spun off its toxic assets into a so-called bad bank, which is expected to hold roughly EUR12 billion (USD16.75 billion) of credit default swaps and other troubled securities as well as EUR1.2 billion in previously granted state guarantees.

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