Germany adopts 480b euro bank bailout
Germany's 480-billion-euro (650-billion-dollar) bank bailout flew through parliament in an historic fast-track vote Friday to restore shattered confidence in the crisis-ridden financial sector.
The rescue package, the biggest ever in German post-war history, sailed through the lower house of parliament, or Bundestag, where 476 parliamentarians voted in favour, 99 against and one abstained.
It was then unanimously passed in the early afternoon in the upper house, or Bundesrat, comprising provincial legislators from Germany's 16 states.
There had been however been some grumbling from regional premiers earlier over the cost of the bailout, since they would have to shoulder 35 percent of the burden.
Finally, the plan -- which includes up to 80 billion euros in fresh capital for banks and 400 billion euros in guarantees in order to jumpstart stalled lending between banks -- was signed by President Horst Koehler.
That meant it could effectively come into force from Saturday once it had been published in the official gazette, opening the doors to any bank seeking aid from Monday.
In the lower house, the ruling conservative CDU/CSU and the Social Democrat SPD parties both voted in favour, as did the liberal FDP. The Greens and the far-left Die Linke party voted against.
Economy Minister Michael Glos said the move was crucial not just for the banks, but primarily for "the good of citizens and the economy."
"Everything must be done to restore confidence" in the financial sector, Glos said.
But Green parliamentary chief Renate Kuenast branded the proposals as a blank cheque for banks, who could still not be held responsible to taxpayers.
Berlin has been at pains to reject such charges, stressing that, in return for aid, the state will take stakes in the banks and demand influence in company decisions, the payment of dividends and even bankers' salaries.
So far, no bank has signalled its intention to apply for aid under the rescue package.
A financial source told AFP that Germany's biggest bank, Deutsche Bank, would not seek state aid.
"Deutsche Bank's capital structure is very strong, as a result there is no need to seek state aid," the source said.
In the meantime, Deutsche Bank chief Josef Ackermann said he would forego his annual bonus of several million euros to show solidarity with staff in a time of financial crisis.
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