Chronicles Of Depression 2.0: #330: Germany

A bit of sexism going on with that photo. Makes her look like she’s rummaging through her purse for her checkbook!

Germany puts together €480-billion rescue plan

Chancellor Angela Merkel announced an unprecedented €480-billion ($643-billion) rescue package for Germany’s banks on Monday, as part of coordinated international effort to stem the global financial crisis.

The government will provide some €80 billion in fresh capital and some €400 billion in guarantees for interbank lending.

Emphasis added by me.

And:

Last week Berlin put together a €50-billion rescue of Hypo Real Estate, the country’s fourth biggest bank, but this took the form of guaranteeing badly needed credit lines rather than the state taking a stake in the stricken commercial property lender.

Now though a drying up of the amount of liquidity held by German banks – as markets have tumbled in the past week and short-term lending has become even harder to secure – has forced a re-think in Berlin.

It has also became clear that the worst hit are not private German banks like Deutsche Bank but the Landesbanks, the regional lending powerhouses that are owned by Germany’s 16 states.

Emphasis added by me.

I’d add: Well, that’s what they know so far.

And so Germany drops its chips into the Bailout Poker Pot.

Explore posts in the same categories: Bank Collapse Watch, C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Politics, C.O.A.T. - Scams, C.O.A.T. - Self-Defense, Depression 2.0

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