Governments across Europe are scrambling to save failing banks on Sunday, a day after European leaders called for a more coordinated response to the global financial crisis.
In Germany today, government and business leaders met to discuss
efforts to save the troubled commercial property lender, Hypo Real
Estate AG. A 48-billion dollar rescue plan to salvage the German
company fell through Saturday.
German Chancellor Angela Merkel said officials are working hard to
secure the lending company. She said Berlin will not allow the distress
of one financial institution to distress the entire system.
In Belgium, financial officials struggled to find a buyer for Fortis, a
Belgian and Dutch banking and insurance group. The Netherlands recently
nationalized the group's Dutch operations.
The leaders of France, Britain, Germany and Italy met Saturday in Paris
and agreed to sign a formal pact to support their individual banking
Europe's financial system has been hard hit by the U.S. economic crisis.
In the United States, banking giant Citigroup announced today that a
judge has agreed to temporarily block the sale of troubled Wachovia
Bank to rival Wells Fargo Bank. Citigroup says the deal violates an
earlier agreement it had reached to take over Wachovia.
U.S. lawmakers approved 700 billion-dollar financial bailout plan on
Friday. The plan allows the U.S. government to buy failing investments
from troubled financial companies in an effort to restore lender and
investor confidence, and to restart economic growth.