German Chancellor Angela Merkel has said the government would not allow the troubled German mortgage lender Hypo Real Estate to "become a crisis for the entire banking system." Officials from the German government, central bank and financial regulator met on Sunday after a 35-billion euro deal to rescue HRE collapsed. Speaking at a joint news conference in Berlin with Finance Minister Peer Steinbrueck, Merkel said managers at financial institutions should be held accountable for what she termed irresponsible behaviour.
Rocket attack against German troops ...
German Finance Minister urges calm following Lehman collapse ... Steinbrueck said the government was working on an "institution specific solution" for HRE. Hypo Real Estate was the first blue chip German company to seek a government rescue package after being sucked into the global financial turmoil due its exposure to massive bad debt.
(Deutsche Welle)
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