European banks are looking for way out from crisis
17 October 2008At absence of the coordinated policy of EU on support of the banks, which have suffered during global credit crisis, the European financial structures differently solve the problems.
On Sunday the government of Germany and consortium of German private banks have developed the new plan of rescue from bankruptcy of large hypothec holding Hypo Real Estate AG (HRE).
The Ministry of Finance of Germany promised to allocate 50 billion euro for these purposes.
Yesterday the step to rescue was made also by financial group Fortis: the largest French bank BNP Paribas has agreed to get its control share holdings of the Belgian and Luxembourg divisions for 14,5 billion euro.
Threat of bankruptcy has hung above HRE because of financial losses of its branch Depfa. The Foreground of rescue HRE has been developed last week and has been approved by Eurocommission: the consortium of not named Deutsche Banks should give HRE the credit at the rate of 8 billion euro, and the government of Germany will add 27 billion euro more.
However the transaction did not take place, as banks have demanded greater guarantees from authorities. The government of Germany has gone on concessions and has allocated additional means.
- European banks disclose credit losses
- Moody’s: Western banks do not want to rescue “daughters”
- UBS, Citigroup and Merrill Lynch can lose 10 billion dollars more
- AIG has directed more than half of the means allocated for its rescue
