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| Germany clinches bank rescue deal | Germany clinches bank rescue deal |
| (30 minutes later) | |
| Germany's finance ministry has agreed a 50bn euro ($70bn; £40bn) plan to save one of the country's biggest banks. | Germany's finance ministry has agreed a 50bn euro ($70bn; £40bn) plan to save one of the country's biggest banks. |
| The deal, reached with private banks, to save Hypo Real Estate is worth 15m euros more than the first rescue attempt, which fell apart on Saturday. | The deal, reached with private banks, to save Hypo Real Estate is worth 15m euros more than the first rescue attempt, which fell apart on Saturday. |
| Germany earlier announced an unlimited guarantee for all private savings, and Denmark later followed suit. | Germany earlier announced an unlimited guarantee for all private savings, and Denmark later followed suit. |
| The steps brought little comfort to Asian markets, where Tokyo's Nikkei index tumbled 3.6% to a four-year low. | The steps brought little comfort to Asian markets, where Tokyo's Nikkei index tumbled 3.6% to a four-year low. |
| The South Korean currency also fell nearly 5%, hit by foreign currency shortages. | The South Korean currency also fell nearly 5%, hit by foreign currency shortages. |
| Monday saw the first session of the Asian markets since the US agreed a $700bn (£394bn) rescue plan for its beleaguered financial sector on Friday. | Monday saw the first session of the Asian markets since the US agreed a $700bn (£394bn) rescue plan for its beleaguered financial sector on Friday. |
| We tell all savings account holders that your deposits are safe. The federal government assures it Angela Merkel | We tell all savings account holders that your deposits are safe. The federal government assures it Angela Merkel |
| The problems of Hypo Real Estate have put further strain on other financial institutions struggling against a crisis of confidence in the global financial system. | The problems of Hypo Real Estate have put further strain on other financial institutions struggling against a crisis of confidence in the global financial system. |
| French giant BNP Paribas confirmed on Sunday night it had agreed to buy 75% of Belgium and Luxembourg holdings of the giant Fortis financial group. | French giant BNP Paribas confirmed on Sunday night it had agreed to buy 75% of Belgium and Luxembourg holdings of the giant Fortis financial group. |
| The governments of Belgium and Luxembourg will in return take a minority stake in BNP Paribas. The Dutch arm of Fortis has been nationalised by the Netherlands government. | The governments of Belgium and Luxembourg will in return take a minority stake in BNP Paribas. The Dutch arm of Fortis has been nationalised by the Netherlands government. |
| And the Icelandic government agreed measures for the country's banks to sell off some foreign assets in a bid to shore up its entire financial system. | And the Icelandic government agreed measures for the country's banks to sell off some foreign assets in a bid to shore up its entire financial system. |
| Iceland's currency last week plummeted by a fifth against the dollar and the government was forced to bail out the country's third largest bank, Glitnir. | Iceland's currency last week plummeted by a fifth against the dollar and the government was forced to bail out the country's third largest bank, Glitnir. |
| 'Irresponsible behaviour' | 'Irresponsible behaviour' |
| Berlin's finance ministry said it had acted to stop Hypo Real Estate's collapse in order to avoid "incalculably large" damage to Germany and financial services providers in Europe. | Berlin's finance ministry said it had acted to stop Hypo Real Estate's collapse in order to avoid "incalculably large" damage to Germany and financial services providers in Europe. |
| European governments are as dazed and confused by the mayhem in the global banking system as most of the rest of us Robert PestonBBC business editor Peston's view: Lost in translationSend us your commentsIceland shores up economy German Chancellor Angela Merkel said managers at financial institutions should be held accountable for "irresponsible behaviour". | European governments are as dazed and confused by the mayhem in the global banking system as most of the rest of us Robert PestonBBC business editor Peston's view: Lost in translationSend us your commentsIceland shores up economy German Chancellor Angela Merkel said managers at financial institutions should be held accountable for "irresponsible behaviour". |
| Earlier, she moved to reassure German savers all their deposits would be safe. | Earlier, she moved to reassure German savers all their deposits would be safe. |
| Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals. | Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals. |
| But after an emergency meeting with the central bank, Ms Merkel said: "We tell all savings account holders that your deposits are safe. The federal government assures it." | But after an emergency meeting with the central bank, Ms Merkel said: "We tell all savings account holders that your deposits are safe. The federal government assures it." |
| There was more gloom in early trading in the Asian financial markets | There was more gloom in early trading in the Asian financial markets |
| The BBC's Tristana Moore in Berlin says Germany's move will relieve investors and send an important message to the German public that banks will not be allowed to go under. | The BBC's Tristana Moore in Berlin says Germany's move will relieve investors and send an important message to the German public that banks will not be allowed to go under. |
| BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee. | BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee. |
| Other EU states - including the UK - may feel they have to follow suit, says our correspondent. | |
| Denmark's government announced just after midnight it would also guarantee all deposits, after its banks agreed to pay into a liquidation fund to take over distressed banks. | Denmark's government announced just after midnight it would also guarantee all deposits, after its banks agreed to pay into a liquidation fund to take over distressed banks. |
| Deposits in Danish banks have in the past been guaranteed up to 300,000 crowns ($55,000; £31,000). | Deposits in Danish banks have in the past been guaranteed up to 300,000 crowns ($55,000; £31,000). |
| The UK finance minister, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to help the British economy. | The UK finance minister, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to help the British economy. |
| On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - stopped short of a co-ordinated US-style bank bail-out but vowed to stabilise markets. | On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - stopped short of a co-ordinated US-style bank bail-out but vowed to stabilise markets. |