German Parliament Passes $675 Billion Bailout Package For Banks

October 17, 2008 10:09 a.m. EST

Berlin, Germany (AHN) - The Bundestag approved on Friday the $675 billion rescue package for German banks. The Bundesrat, the upper house, is expected to pass later the same bailout fund, one of the largest in the world.

A total of 476 legislators supported the bailout package, while the smaller Left and Greens parties tried to block the bill but could only muster 99 votes.

Up to $536 billion (400 billion euro) will be allocated as lending guarantees for banks, another $107 billion (80 billion euro) will be to recapitalize banks and $27 billion (20 billion euro) more to back up the guarantees. The amounts are ceilings and may not be fully used.

Aside from German Chancellor Angela Merkel who appealed on Thursday for the Bundestag to approve the bailout package, Finance Minister Peer Steinbruck also said the funds and bailout plan was not designed to reward German banks, but to protect the deposits of nationals.