A Bloomberg report (or rather a Sueddeutsche Zeitung report) from April 24th deserves way more attention than it seems to have received. The key is that the leaked memo is true:

“German banks’ total risks from problem loans amount to 812 billion euros ($1.1 trillion) according to calculations by the BaFin financial-market regulator, Sueddeutsche Zeitung said, citing a confidential memorandum.”

With German banks needing to deal with $1.1 trillion, how much does that indicate for American banks, on a pro rata basis?  Wait til there’s a similar “internal memo” leaked about American banks…