Topic: Mortgage Subprime Crisis
The governments are striving hard in Europe particularly of Germany, Britain, Belgium, where the effect is miserable due to bad Real Estate transactions that have undergone in past. The effect of huge package of $700 billion by US Federal Reserves and Citi group taking up Wachovia Corp, the fourth largest US bank made the governments of Europe to take stern action preventing devastating Financial effects.
To reduce the negative outcomes, which is worse compared to the Great Depression of 1930’s, the European governments have taken stake in Fortis, the biggest private employer in Belgium upto $16.4 billion. The German Government agreed to provide 35 billion euros to fund Hypo Real Estate to bring it back from the brink of disaster.
The Britain Government bought up 50 billion pounds of loans, mostly mortgages from Bradford & Bingley.
Source: DeccanHerald, September 30
