Business
German Chancellor Angela Merkel, left, and German Finance Minister Wolfgang Schaeuble attend a general debate about her governments policy as part of the 2012 budget debate in Berlin, Wednesday, Sept. 7, 2011. (AP Photo/Markus Schreiber) German Chancellor Angela Merkel, left, and German Finance Minister Wolfgang Schaeuble attend a general debate about her governments policy as part of the 2012 budget debate in Berlin, Wednesday, Sept. 7, 2011. (AP Photo/Markus Schreiber)  

Germany plans bank rescue should Greek aid package fail

Chancellor Angela Merkel’s government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said.

The emergency plan involves measures to help banks and insurers that face a possible 50 percent loss on their Greek bonds if the next tranche of Greece’s bailout is withheld, said the people, who spoke on condition of anonymity because the deliberations are being held in private. The successor to the German government’s bank-rescue fund introduced in 2008 might be enrolled to help recapitalize the banks, one of the people said.

Full story: Germany Said to Ready Plan to Help Banks If Greece Defaults