Germany readying rescue tools for big banks – Finance Ministry

By Reuters Staff
January 19, 2010

BERLIN, Jan 19 (Reuters) – The German government is preparing new measures for the rescue of “systemically relevant” banks should they land in trouble, Finance Minister Wolfgang Schaeuble said on Tuesday.

Schaeuble noted that the ruling parties in the centre-right government had said in their coalition agreement they would prepare such measures and added: “The government will present a corresponding set of instruments.”

He said the financial crisis had shown existing instruments to deal with struggling big banks were insufficient.

“So there is a need to have instruments ready, including for systemically relevant banks, that allow an orderly reorganisation in the instance of a crisis and involve stakeholders and creditors appropriately in any rescue,” Schaeuble told the Bundestag lower house of parliament.

(Editing by Patrick Graham) ((paul.carrel@reuters.com; +49 30 2888 5210; Reuters Messaging: paul.carrel.reuters.com@reuters.net))

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