The Bundesbank, Germany’s central bank, plans to shed roughly €2 billion ($2.6 billion) of distressed property loans tied to the Lehman Brothers' debacle, according to a Financial Times report today.

The report said that the German central bank has agreed to sell half of the €1.8 billion Excalibur portfolio to the U.S. private equity firm Lone Star. Details on what Lone Star will pay for the loans have not been disclosed.

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