Germay Bailout

TOPWRAP 4-Germany insures savings amid bank rescue talks | Markets | Markets News | Reuters: "Germany offered a blanket guarantee on banks deposits in a bid to contain a spreading credit crisis as officials scrambled to find new capital for least three European banks before financial markets open in what is likely to be a new week of uncertainty.

Germany said it would guarantee more than 500 billion euros ($693 billion) in private deposit accounts to protect savers from the worst global financial crisis since the 1930s. Austria quickly followed suit. 'We say to savers that their deposits are safe,' Chancellor Angela Merkel said at a news conference in Berlin. 'The federal government is also committed to that.'

The pledge came as German officials struggled to save lender Hypo Real Estate (HRXG.DE: Quote, Profile, Research, Stock Buzz), Belgium and Luxembourg raced to find a buyer for troubled financial group Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz) and UniCredit (CRDI.MI: Quote, Profile, Research, Stock Buzz), Italy's second-biggest bank, was locked in talks aiming to raise new capital."

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