In an attempt to avoid panic, Germany said it would guarantee all private bank account worth £438bn. Angela Merkel German chancellor said "We want to tell people that their savings are safe" as the financial crisis was spreading panick withdrawls from their savings.
German official's said the country's commercial banks had agreed to inject €15bn extra into Hypo Real Estate, the German mortgage and public sector lender, the bailout is now up to € 50bn.
Germany's guarantee was a done after Ireland last week to guarantee the six largest banks liabilities. UK and France and many more European countries were trying to learn the details of the new deal Germany had done. One UK official said that they were very dissapointed with chancellor Merkel's secret plans after she attended the economic forum in Paris only one day before.
The Danish goverment was the latest to guarantee all bank deposits in a move to calm and secure its peoples savings.
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