- Title: GERMANY: POLITICS - Government drafts legislation to nationalise banks
- Date: 19th February 2009
- Summary: BERLIN, GERMANY (FEBRUARY 18, 2009) (REUTERS) GERMAN CHANCELLOR ANGELA MERKEL ARRIVING TO MAKE STATEMENT AT CHANCELLOR'S OFFICE VIEW OF GERMAN PARLIAMENT SEEN THROUGH WINDOW (SOUNDBITE) (German) ANGELA MERKEL, GERMAN CHANCELLOR, SAYING: "First, through a capital reduction and then a capital increase we will try to take control. There are opportunities. Only if everything else fails, will we have to resort to expropriation as a last solution. We have to take this path in order to achieve our goals. We analysed this carefully and I believe there is no alternative." CAMERA LENS MERKEL WALKING OFF FINANCE MINISTER PEER STEINBRUECK ARRIVING FOR NEWS CONFERENCE REPORTERS SEATED (SOUNDBITE) (German) PEER STEINBRUECK, GERMAN FINANCE MINISTER, SAYING "A second remark which is very important to me: nobody in the German government wants to extend state influence beyond this legislation." WIDE OF NEWS CONFERENCE
- Embargoed: 6th March 2009 12:00
- Location: Germany
- Country: Germany
- Topics: Domestic Politics
- Reuters ID: LVACW3YH6SI8169ML03NXUX6IAQK
- Story Text: German Chancellor Angela Merkel said on Wednesday (February 18) that there was an opportunity for the government to take control of stricken lender Hypo Real Estate via a capital reduction followed by a capital increase.
Merkel was speaking after the cabinet approved new measures to shore up the German banking sector which would allow the government to expropriate shareholders of Hypo Real as a last resort if all other options were exhausted.
Earlier, German Finance Minister Peer Steinbrueck said he wanted to make clear that "nobody in the German government wants to extend state influence beyond this legislation."
Germany will only expropriate shareholders in troubled banks as a "last resort", Steinbrueck said.
He said the government would exhaust all other methods before taking such a step with Hypo Real Estate, including possibly a capital reduction at a shareholder meeting in early April.
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