The German financial regulator, BaFin, has hit out at German banks - causing a plunge in the euro's recent strength.
BaFin released its annual report and its president added to the doom by saying that unless German banks take advantage of the Government's protection plans, they will be plunged into their worst debts ever.
The currency markets showed the euro's fall - the first in seven days - against the US dollar, to $1.3947, down from $1.4017 on Monday. BaFin president Jochen Sanio said the markets would "kill" those banks that do not accept aid from the state.
The report goes against that which shows business confidence in Germany has risen, something which has given rise to an increase in general market confidence. Many are saying that it is too early to celebrate - and the BaFin report clearly supports this.
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