Germany backs draft law allowing nationalisations

The bill paves the way for Berlin to take control of Munich-based lender Hypo Real Estate and leaves open the possibility of an expropriation of its shareholders as a last resort.

Germany backs draft law allowing nationalisations
German Chancellor Angela Merkel's cabinet has approved a draft law which would allow Berlin to nationalise stricken banks to shore up the financial system, the government confirmed on Wednesday.

The bill paves the way for Berlin to take control of Munich-based lender Hypo Real Estate and leaves open the possibility of an expropriation of its shareholders as a last resort.

Hypo has received a total of 102 billion euros in guarantees from the state and fellow banks but its financial condition remains uncertain.

Reuters
Last Mod: 18 Şubat 2009, 13:40
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