German banks are - by a large margin - not the most exposed to Greece. French banks for example are much more exposed to Greek dept. If Greece fails, this will hit German banks, but other banks much more, it might be especially hard for countries with a smaller GDP and a higher bailout/GDP ratio.
As a German taxpayer I don't care whom I bail out.
Funny thing: People talk about Germany, instead of Greece. Sure, bailing out German banks will cost some money, a state breakdown in Greece will cost Greek people much more.
Bailing out the Greeks made some sense when it was seen to be cheaper than bailing out German banks. But as the situation stands it looks like bailing out Greece is throwing good money after bad, and the German banks will have to be bailed out anyway. So from the German perspective the right thing to do would be to let the Greeks go bankrupt.
The total exposure of French banks to Greek debt is larger than the total exposure of German banks to Greek debt, true, but the problem for Germany as a whole is that a specific group of German banks, namely the Landesbanken that fund a large part of German industry, have comparatively large proportions of their holdings in Greek debt.
So the Germans don't have to worry about bailing out Commerzbank or Deutsche bank the way the French are worried about BNP or Credit Agricole, but they do have to worry about what happens if the Bayerische Landesbank can no longer fund Bavarian factories.
As a German taxpayer I don't care whom I bail out.
Funny thing: People talk about Germany, instead of Greece. Sure, bailing out German banks will cost some money, a state breakdown in Greece will cost Greek people much more.