Euro Nations Agree to Snap Up Bank Shares

By Gabriel Winant,  Newser User
Posted Oct 12, 2008 3:20 PM CDT
European leaders huddle during a crisis summit at the Elysee palace in Paris, Sunday, Oct. 12, 2008.   (AP Photo/Michel Spingler)
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(Newser) – European leaders emerged from a summit in Paris today and echoed the latest from Washington and London: It's time to buy up the banks, the New York Times reports. None of the 15 nations named an official price, but Germany and France will roll out plans tomorrow to buy equity stakes in troubled banks. “The goal is to kick-start the interbank lending market,” said Belgium's finance minister.

Europe's central bank also vowed to help free up the commercial paper market that keeps businesses afloat day-to-day. Otherwise, Europe's plan is not centralized: Each country faces unique problems and will inject its own billions into banks. “Our goal is to have coordinated action for the euro zone,” said German Chancellor Angela Merkel.