Germany said on Sunday it would guarantee all private German bank accounts ”“ currently worth €568bn ”“ in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe’s largest economy.
“We want to tell people that their savings are safe,” Angela Merkel, chancellor, said at an unscheduled press conference on Sunday. The scheme would cover existing accounts and others which savers might open….
German officials said the move was agreed because of fear that the crisis at Hypo Real Estate ”“ a listed mortgage and public sector lender, whose government-backed €35bn ($48bn, £27bn) rescue collapsed at the weekend ”“ would lead to widespread panic on Monday.
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Germany guarantees savings to avert panic
Germany said on Sunday it would guarantee all private German bank accounts ”“ currently worth €568bn ”“ in a dramatic move to prevent panic withdrawals as fears over the worldwide financial crisis spread to Europe’s largest economy.
“We want to tell people that their savings are safe,” Angela Merkel, chancellor, said at an unscheduled press conference on Sunday. The scheme would cover existing accounts and others which savers might open….
German officials said the move was agreed because of fear that the crisis at Hypo Real Estate ”“ a listed mortgage and public sector lender, whose government-backed €35bn ($48bn, £27bn) rescue collapsed at the weekend ”“ would lead to widespread panic on Monday.
Read it all.