Euro States Need Bank Backstops, German Minister Schaeuble Says
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German Finance Minister Wolfgang Schaeuble said that every euro-area country must prepare its own plan to protect banks in the event that the crisis worsens, the first confirmation of government efforts to shield banks.
Schaeuble said that he has asked for reports from all 17 euro governments before the Oct. 3 meeting of European finance ministers addressing the issue of “what are your backstop plans” for banks, he said during a panel discussion in Berlin today. States must consider potential help in their backup plans, because it “could come to a serious situation.”