Germany expects domestic "bad banks" holding billions of euros in Greek debt to participate in a bond swap designed to ease Athens' debt burden.     "It is a decision for the two bad banks to take," a spokeswoman for the German finance ministry said, when questioned about whether bad banks set up to house the toxic assets of Hypo Real Estate and WestLB would participate. "We expect them to make a contribution."     The bad banks are overseen by Germany's finance ministry.     The Financial Times reported earlier on Monday that the two bad banks had yet to decide whether to join the bond swap and suggested this could threaten the goal to secure the participation of 90 percent of private investors.     A spokeswoman for EAA, the bad bank spun off from troubled lender WestLB, said: "In principle we are prepared to participate, but before we can make a final decision, we need to review how something like this impacts our public sector mandate."     A spokesman for FMS, the bad bank spun-off from bailed out Hypo Real Estate, said no decision about a participation had yet been taken.