Over $768 Billion Worth Of Personal Deposits In German Banks Guaranteed By Federal Government

Berlin, Germany (AHN) - Following the failure of major European leaders to come up Saturday with a comprehensive plan on how to deal with the global financial crisis, German Chancellor Angela Merkel issued Sunday a guarantee for all personal savings deposits in Germany.

The total value of all personal savings in German banks is estimated at $768 billion (568 billion euro).

Her statement was an attempt to stop the dissipation of consumer confidence in Deutschland. Merkel told media, "We want to tell savers that their deposits are safe... The government will vouch for that."

He assurance came on the heels of a decision by the federal government and Germany's major banks and insurance firms to make available a new $68 billion rescue package for Hype Real Estate Holding, the country's second largest property lender.

Aside from providing protection to individual depositors, Germany will also study way to provide protection to the banking sector. German Finance Minister Peer Steinbrueck told Deutschlandfunk, "Now we have to try to move beyond Hypo Real Estate's singular solution and try to put an umbrella over all of Germany so we're not mixed up with one case after another."