Merkel’s Cabinet Backs Bank-Rescue Fund Revival Amid Crisis
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Chancellor Angela Merkel’s Cabinet backed plans to reactivate Germany’s bank-rescue fund to help bolster lenders facing insolvency and lessen the risk of a systemic financial meltdown as a result of the debt crisis.
Ministers meeting in Berlin today agreed to boost the size of the fund to 480 billion euros ($626 billion) from 360 billion euros, according to the draft bill. The text waters down provisions in earlier drafts to force troubled banks to recapitalize.