Germany shelves bank seizure legislation

The German government said on the 2 February 2009 it would hold off on adopting legislation that would allow it to take control of some of the country’s banks by expropriating shareholders after members of the ruling coalition expressed serious misgivings about the bill.

Nevertheless, Deutsche Welle reports that the German government is still considering a controversial plan to nationalise Hypo Real Estate. It would mark the first government takeover of a private bank since World War II.

ESO: Background information: Berlin agrees new package to save Hypo http://www.europeansources.info/record/berlin-agrees-new-package-to-save-hypo/

Wikipedia: Hypo Real Estate http://en.wikipedia.org/wiki/Hypo_Real_Estate

Deutsche Welle, 2.2.09: German Government Considers Bank Takeover http://www.dw-world.de/dw/article/0,,3995535,00.html

Deutsche Welle, 11.2.09: German Government Gives More Billions to Hypo Real Estate http://www.dw-world.de/dw/article/0,,4020568,00.html

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