[OPE] Financial Crisis in Germany

From: Gerald Levy <jerry_levy@verizon.net>
Date: Tue Oct 07 2008 - 08:41:17 EDT

Extracted from a post to another list. Note links at end in German.
In solidarity, Jerry

>From the Spiegel:

Germany Agrees on New Rescue Package for HRE

The German government and financial sector agreed a second rescue
package for mortgage lender Hypo Real Estate in Sunday night talks.
The government also took the surprise step of guaranteeing private
deposits, a move which could up pressure on other European nations.

German mortgage lender Hypo Real Estate has been bailed out a second
time to protect the German banking sector.

It was a race against time to avert a financial disaster with
unpredictable consequences. Late on Sunday night, top officials from
Germany's Bundesbank central bank, financial watchdog Bafin and from
the country's main commercial banks agreed to a new rescue package for
troubled Munich-based mortgage lender Hypo Real Estate.

The financial sector agreed to provide an extra 15 billion euros in
liquidity for HRE on top of the 35 billion euros they had already
committed together with the Bundesbank in a package hammered out a
week ago, the Finance Ministry said.

"With this commonly forged solution, (Hypo Real Estate) will be
stabilized and thereby the German financial marketplace strengthened
in difficult times," the ministry said.

more: http://www.spiegel.de/international/business/0,1518,582359,00.html

links in German:





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Received on Tue Oct 7 08:43:16 2008

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