Here are some quick updates on Banking rescues within the EU and other parts of the world:
(From the FT): " The German and French government on Monday unveiled plans to restore liquidity and inject fresh capital into their banking sectors – as part of a coordinated bailout campaign by western governments.
Berlin’s bill to shore up the country’s ailing banking and insurance sector was potentially worth up to €470bn, while France’s plan totalled €340bn. Details also began to emerge of the plan to recapitalise US banks and other financial institutions.
taly was among other countries poised for a bailout announcement after Britain said it would inject £37bn into Royal Bank of Scotland, HBOS and Lloyds TSB. News that the German bill was on its way to chancellor Angela Merkel’s cabinet sent the Frankfurt stock exchange soaring. The exchange’s blue-chip DAX index was up 6.53 per cent, or 296.53 points by mid-morning.
Gordon Brown, the British prime minister, said that he expected other countries to follow his country’s “unprecedented but essential” bailout . “In extraordinary times, (with) our financial markets ceasing to work, the government cannot just leave people on their own to be buffeted about,” he told a news conference in Downing Street.
Spain on Monday said it would provide up to €100bn of guarantees for new debt issued by commercial banks in 2008 and an unspecified further amount next year as part of a eurozone plan to restore confidence in the financial system. José Luis Rodríguez Zapatero, the prime minister, made the announcement after an emergency cabinet meeting following the eurozone summit in Paris at the weekend.
Mr Zapatero said the cabinet had also approved a measure allowing the government to buy bank shares, although ministers say they do not see the need at this stage to inject capital into Spanish financial institutions.
In other moves, Australia and New Zealand announced guarantees for all bank deposits, as did the United Arab Emirates , while Saudi Arabia cut its interest rates.
The Swedish government said on Monday it would unveil steps to safeguard their financial sector in the next few days, but did not plan to inject capital into the Nordic country’s banks.
