“BY LAURA STEVENS AND EYK HENNING
FRANKFURT—As Europe races to restore confidence in Spain’s finances and the euro, Germany has another reason for urgency in resolving the crisis: the health of its own banks.
German lenders have the highest exposure in Europe to Spain, at $139.9 billion, of which $45.9 billion alone is exposure to banks, according to the Bank for International Settlements.
European countries agreed to extend to Spain a €100 billion ($130 billion) aid package for its ailing banks this summer, but concern is growing that Spain might need a more comprehensive rescue package to shore up its public finances. A key test of …”