In recent years, local governments and community-based organizations have struggled to counter the effects of foreclosures on neighborhoods. Some communities have found success by establishing land banks to manage low-value properties that might otherwise sit vacant if left to the private market.1 Land banks are typically public or nonprofit entities, often with a limited lifespan and sunset provisions.
That all sounds fine, but Germany has a different perspective: a common deposit insurance scheme means that Germans would also be affected if, say, a bank in Italy failed. To return to the metaphor: if it rains, the roof would be in a worse state after the repair than before. Why should we agree to that?