View more on these topics

German savers get 100% guarantee

The German government announced yesterday that it would guarantee all private savings accounts, worth approximately £390bn, in order to increase confidence in the financial system.

According to the International Herald Tribune, Chancellor Angela Merkel and Finance Minister Peer Steinbrück assured savers they would seek any necessary legislation to carry out the guarantee.

Steinbrück said: “This is an important signal so that it comes to some calming down, not to reactions that would be out of proportion and would make our crisis management and crisis prevention that much more difficult.”

German deposits are guaranteed through a mixture of deposit insurance plans, with a state fund stepping in in the first instance. Public, private and community banks also contribute to a rescue fund.

The Finance Ministry said the new blanket guarantee would be effective immediately, although it was unclear whether new legislation would be needed.

Merkel added that bankers would be held to account for their part in the financial crisis.

She said: “We are also saying that those who engaged in irresponsible behavior will be held responsible. The government will ensure that. We owe it to taxpayers.”

Officials in Berlin have agreed a £38.7bn bailout for Hypo Real Estate, a major German property lender based in Munich and member of the benchmark stock index.


Positive attitude

Investors will be painfully aware that most equity markets have fallen this year and it would be a brave man who suggests that we are now through the worst.

Darling ready to pump more capital into banks

The Government is expected to announce a huge package of support for the banking industry following pressure to inject additional capital into banks in exchange for equity stakesChancellor Alistair Darling met the chief executives of Royal Bank of Scotland, Barclays and Lloyds TSB earlier this week to discuss fund-raising measures after industry concern that Government support was not going far enough.

Madness in the method

The latest Pensions Bill will become law during the autumn Parliamentary session. This makes it the fifth Pensions Act in 10 years. It follows the recommendations of the Pensions Commission in requiring employers to enrol their employees in a pension scheme. This can include a personal account.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm