Overseas bailout
The shaky financial system is claiming more victims. In the U.K. the government had to buy part of another major bank, for the second time this year. And a Spanish bank has taken over its deposit accounts. Prime Minister Gordon Brown defended the move and tried to calm nerves but also signaled there might be more trouble ahead. Stability is in short supply across Europe. In Brussels another multinational and multi billion dollar bailout saved another bank and now three governments have a 49% stake in the bank, and they didn’t waste any time taking charge. In these times even a whisper of failure is enough to fuel a crisis. The head of the government seized bank blamed the rumor mongers. The move drew mixed reviews in Belgium from ordinary citizens. In Iceland the government is buying 75% of one of the nation’s biggest banks, and Germany had to take similar actions for a mortgage company. Anyone looking for some sign of ending turmoil better not listen to the man in charge of the British banking industry.
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