German Government will bailout bank deposits

Mon, Oct 6 2008, 07:11 GMT
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FXstreet.com (Barcelona) – German Chancellor Angela Merkel is moving fast in order to avoid the worst consequences of the financial turmoil hitting German private banking, and she has assured her determination to guarantee bank deposits.

After a meeting of the prime minister’s of the largest European economies, UK, Italy, France and Germany, the leaders committed themselves to act locally in order to shore up failing financial institutions and banks, rather than signing a common plan for the whole European Union. Nevertheless, a global economic summit has been scheduled to examine the international financial system’s health.

Merkel made public her commitment to work in a bailout plan after the announcement of the approval of a EUR 50 Billion package to save Hypo Real State Bank, after the criticism against Ireland for having announced similar intentions few days ago.

European governments are rushing to approve measures to safeguard their economies from the contagion of the banking failure, as fears of European Banks suffering the same problems US banks have gone through, are increasing by the Minute. After Hypo Real State’s case in Germany, banks and financial institutions from France, Italy, Belgian and Iceland are expected to shake the markets today.

EUR/USD

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