Since mid-January 2009 there has been an ongoing discussion on necessary changes of the Financial Market Stabilisation Act (FMStG). The proposals range from modifications of existing measures (in particular an extension of state guarantees for debt issuing by financial sector enterprises from three to five years) to a paradigm change (that is, the wholesale transfer of "toxic" securities at par to a government funded new entity).

This latter suggestion is branded as the "bad bank" concept and is provoking great controversy among politicians, regulators, market actors and economists (scholars). At least three alternatives to this clear cut solution are currently under discussion:

The third approach has already been taken in the case of Commerzbank under the FMStG, but could now be extended in two directions: recapitalising more banks and fully nationalising heavily troubled banks.

According to a communication circulated by the Federal Ministry of Finance on 29 January 2009, the EU Commission and the German Government agreed that the Fund may purchase risk positions for a period for more than three years provided that this measure is notified to the Commission and the amount of the consideration payable for the asset transfer has been agreed by the Commission before the transfer of the assets.