Journal # The German government has approved a draft law that would allow it to take over threatened banks--including the troubled Hypo Real Estate. # 18.02.2009 18

The German government has approved a draft law that would allow it to take over threatened banks--including the troubled Hypo Real Estate. The government is currently in talks with major shareholders on the possibility of a voluntary buyout. If that option does not work out, the new bill leaves open the possibility of "expropriating" the shareholders - compelling them to sell their stakes - as an emergency measure. Hypo has already received billions of euros in state guarantees, but remains close to bankrutpcy.