German bank announces collapse of 35 billion euro rescue

[muriel_volestrangler]

Source: AFP

German bank Hypo Real Estate (HRE) said Saturday that a planned 35-billion-euro (48-billion-dollar) rescue had fallen through after the banking consortium involved pulled out of the deal.

The rescue bid was the biggest in German history and came after HRE was sucked into the global financial turmoil through its inability to refinance debt, one of many high-profile European emergency cases in the past two weeks.
...
The biggest German Bank, Deutsche Bank, had reportedly evaluated that HRE would need 20 billion euros in fresh capital by the end of next week.

Deutsche Bank warned in addition that "by the end of the year, there will be a shortfall of up to 50 billion euros and even of 70 to 100 billion by the end of 2009," the newspaper said.

Read more: http://afp.google.com/article/ALeqM5gnwGl7boOibV72BKczAraZk1KmEg

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Also:

No banks bail-out fund for Europe

Europe's biggest economies have agreed to work together to support financial institutions - but without forming a joint bail-out fund.
...
They agreed to seek a relaxation of the EU rules governing the amount of money individual states could borrow.

Mr Sarkozy announced a series of other measures - including unspecified action against the executives of failed banks.
...
Ahead of the meeting, Germany had made clear its opposition to any co-ordinated European bail-out plan. Mr Brown was also sceptical of the need for any Europe-wide plan.

http://news.bbc.co.uk/1/hi/world/europe/7648249.stm

Sarkozy had suggested a US-style bailout fund.

[lib2DaBone]

1. Hurry.. it's Americas Duty to Bail Them Out.

[dipsydoodle]

2. series of other measures............

one of which, on our tv news, appears to be to change the accounting rules so that hedge funds have to use future values of funds projected of couse from TRUE current values. That could mean as that current values diminish they could land up needing to change their balance sheets almost daily.

Whatever - there seems to no doubt that the accounting rules over this side are going to tightened up significantly.

[judasdisney]

3. Hahahahahahahaha

See what happens when you try to "rescue" debt by creating more "bailout" debt?

Hahahahahahaha

[T_i_B]

4. Another major European bank on brink of collapse

Source: Sunday Telegraph

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. It is a fresh blow for the global financial system struggling to master an unprecedented crisis of confidence.

A Finance Ministry spokesman said: “It’s a matter of using all possibilities for a solution. Everyone has to meet their responsibility, and according to the scale of their responsibility.”



Read more: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3139218/Financial-crisis-Hypo-Real-Estate-nears-collapse-after-rescue-plan-is-withdrawn.html

[Alpharetta]

5. is this writer accurate?

From the article

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

Did they really make such a pledge? I saw many quotes that they would give their best efforts, but no such pledge that no major institution would be allowed to fail.

[girl gone mad]

8. Germant and Ireland have, that I know of.

They've guaranteed all deposits, anyhow.

[BearSquirrel2]

7. Bullshit ...

Oh bullshit, it is self manufactured shock in order produce record government giveaways.

[BelgianMadCow]

6. I am VERY, VERY grateful to the Germans

We already forgave the 2nd world war.