Sunday, October 05, 2008

Germany Guarantees All Deposits

by Calculated Risk on 10/05/2008 11:47:00 AM

These reports are in German, but I believe they are saying the German government has guaranteed all deposits (update: apparently all deposits by private individuals).

From Reuters: Staat übernimmt Garantie für Einlagen

From Focus: Bund sichert private Spareinlagen komplett

This is probably related to the collapse of the bailout for Hypo.

Executives at the bank, which is Germany’s second largest commercial property investor and has extensive holdings across Europe, are now locked in crisis talks with the German government and central bank in an attempt to deliver an alternative plan before the stock markets open on Monday.

The German Finance Ministry has urged the private sector consortium to rethink its decision.

The collapse of the €35 billion (£27.3 billion) bail-out will provide an immediate test to the pledge made on Saturday by leaders from the biggest European Union countries that they will ensure that no major European financial institution will be allowed to fail.