Bank runs 3

Angela Merkel is afraid  of bank runs now.


This is taken from the New York Times article today specified in last blog:

Mrs. Merkel, now increasingly concerned about any run on the banking system, told finance ministers and leaders from the World Bank and the I.M.F. last week in Berlin that Germany supported a coordinated bank recapitalization program.

Mrs. Merkel does not want to funnel more taxpayer money to the banks before they try going to the markets to raise capital. But she acknowledged in recent meetings in Berlin with World Bank and I.M.F. officials that Germany would not hold back in bolstering the banks if necessary. Failure to do so, she said, would lead to “vastly higher damage.