These days it seems it’s another day – another bank collapse. This time it is not in the United States, nor the United Kingdom, but rather Germany.
Another major European bank is close to collapse following the failure of talks to rescue Germany’s second-largest mortgage lender, Hypo Real Estate.
The bank says a consortium of German financial institutions involved in a government-led rescue plan pulled out of the negotiations after refusing to come up with nearly $50 billion for a bail-out.
Hypo Real Estate is Germany’s fourth largest bank.
Meanwhile, as the crisis deepens, the German Government has announced it will guarantee all private savings accounts.
» German bank to collapse after failed bail-out – The ABC, 5th October 2008.
» German Govt guarantees savings as financial crisis deepens – The ABC, 5th October 2008.