Germany: Merkel's Cabinet agrees on expropriation law

[jordi_fanclub]

Source: AP via International Herald Tribune

BERLIN: Chancellor Angela Merkel's Cabinet agreed on a new law Wednesday that will allow the German government to take over private banks hit by the global financial crisis.

The legal change may be used to take over Hypo Real Estate, a Munich-based bank ravaged by the financial crisis. Since September, Hypo has asked for a total of €52 billion ($66 billion) in government loan guarantees.

If approved by parliament, the law would open a window until June 30 for banks that have tapped federal bailout funds to be taken over, according to a draft of the legislation released by the Finance Ministry.

Read more: http://www.iht.com/articles/ap/2009/02/18/business/EU-Germany-Economy.php