Germany to guarantee bank deposits

In addition to helping rescue Hypo Real Estate from possible collapse, the German government has sought to reassure its citizens by announcing that it will guarantee all bank savings. Finance Minister Peer Steinbrück told reporters in Berlin that this meant that bank customers in Germany need not fear losing even a single euro of their deposits. He said the move was meant to discourage German bank customers from withdrawing their savings in a panic. This comes despite the fact that Chancellor Angela Merkel had sharply criticised the Irish government late last week after it announced that it would guarantee all savings at banks there