This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7653868.stm

The article has changed 14 times. There is an RSS feed of changes available.

Version 11 Version 12
Germany clinches bank rescue deal Germany clinches bank rescue deal
(about 1 hour later)
Germany's finance ministry has agreed a 50bn euro ($68bn; £38.7bn) plan to save one of the country's biggest banks.Germany's finance ministry has agreed a 50bn euro ($68bn; £38.7bn) plan to save one of the country's biggest banks.
The deal to save Hypo Real Estate, reached with private banks, is worth 15bn euros more than the first rescue attempt, which fell apart on Saturday.The deal to save Hypo Real Estate, reached with private banks, is worth 15bn euros more than the first rescue attempt, which fell apart on Saturday.
Germany earlier announced an unlimited guarantee for all private savings, and Denmark later followed suit. Germany earlier appeared to announce an unlimited guarantee for private savings and Denmark later followed suit.
The steps brought little comfort to Asian markets, where Tokyo's Nikkei index tumbled 4.7% to a four-year low.The steps brought little comfort to Asian markets, where Tokyo's Nikkei index tumbled 4.7% to a four-year low.
The turmoil in Europe also pushed markets in Australia, India and Hong Kong down by more than 3% in the first sessions since the US agreed a $700bn (£394bn) bail-out for its beleaguered financial sector on Friday. FROM THE TODAY PROGRAMME class="" href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme
We tell all savings account holders that your deposits are safe. The federal government assures it Angela Merkel
The problems of Hypo Real Estate have put further strain on other financial institutions struggling against a crisis of confidence in the global financial system.The problems of Hypo Real Estate have put further strain on other financial institutions struggling against a crisis of confidence in the global financial system.
French giant BNP Paribas confirmed on Sunday night it had agreed to buy 75% of Belgium and Luxembourg holdings of the giant Fortis financial group. In other developments:
    class="bulletList">
  • The turmoil in Europe pushed markets in Japan, Hong Kong and India down by more than 3% in the first trading sessions since the US agreed a $700bn (£394bn) bail-out for its beleaguered financial sector on Friday.
  • French giant BNP Paribas confirmed it had agreed to buy 75% of Fortis's operations in Belgium and Luxembourg. In return, the governments of Belgium and Luxembourg will take a minority stake in BNP. The Dutch arm of Fortis has been nationalised by the government of the Netherlands.
  • The Icelandic government agreed measures for the country's banks to sell off some foreign assets in a bid to shore up its entire financial system. Iceland's currency last week plummeted 20% against the dollar and the government was forced to bail out the country's third-largest bank, Glitnir.
The governments of Belgium and Luxembourg will in return take a minority stake in BNP Paribas. The Dutch arm of Fortis has been nationalised by the Netherlands government. We tell all savings account holders that your deposits are safe. The federal government assures it Angela Merkel
And the Icelandic government agreed measures for the country's banks to sell off some foreign assets in a bid to shore up its entire financial system.
Iceland's currency last week plummeted by a fifth against the dollar and the government was forced to bail out the country's third largest bank, Glitnir.
'Irresponsible behaviour''Irresponsible behaviour'
Berlin's finance ministry said it had acted to stop Hypo Real Estate's collapse in order to avoid "incalculably large" damage to Germany and financial services providers in Europe.Berlin's finance ministry said it had acted to stop Hypo Real Estate's collapse in order to avoid "incalculably large" damage to Germany and financial services providers in Europe.
European governments are as dazed and confused by the mayhem in the global banking system as most of the rest of us Robert PestonBBC business editor Peston's view: Lost in translationSend us your commentsIceland shores up economy
German Chancellor Angela Merkel said managers at financial institutions should be held accountable for "irresponsible behaviour".German Chancellor Angela Merkel said managers at financial institutions should be held accountable for "irresponsible behaviour".
Earlier, she moved to reassure German savers all their deposits would be safe.Earlier, she moved to reassure German savers all their deposits would be safe.
Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals.Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals.
But after an emergency meeting with the central bank, Ms Merkel said: "We tell all savings account holders that your deposits are safe. The federal government assures it."But after an emergency meeting with the central bank, Ms Merkel said: "We tell all savings account holders that your deposits are safe. The federal government assures it."
There was more gloom in early trading in the Asian financial markets European governments are as dazed and confused by the mayhem in the global banking system as most of the rest of us Robert PestonBBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/10/german_guarantee_lost_in_trans.html">Peston's view: Lost in translation class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=5449&edition=1">Send us your comments class="" href="/1/hi/business/7653750.stm">Iceland shores up economy
The BBC's Tristana Moore in Berlin says Germany's move will relieve investors and send an important message to the German public that banks will not be allowed to go under.The BBC's Tristana Moore in Berlin says Germany's move will relieve investors and send an important message to the German public that banks will not be allowed to go under.
BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee.BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee.
Other EU states - including the UK - may feel they have to follow suit, says our correspondent. Other EU states - including the UK - may feel they have to follow suit, our correspondent says.
Denmark's government announced just after midnight it would also guarantee all deposits, after its banks agreed to pay into a liquidation fund to take over distressed banks.Denmark's government announced just after midnight it would also guarantee all deposits, after its banks agreed to pay into a liquidation fund to take over distressed banks.
Deposits in Danish banks have in the past been guaranteed up to 300,000 crowns ($55,000; £31,000).Deposits in Danish banks have in the past been guaranteed up to 300,000 crowns ($55,000; £31,000).
The UK finance minister, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to help the British economy.The UK finance minister, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to help the British economy.
On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - stopped short of a co-ordinated US-style bank bail-out but vowed to stabilise markets.On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - stopped short of a co-ordinated US-style bank bail-out but vowed to stabilise markets.