The German Government has published a new expropriation notice in the Bundesgesetzblatt, clearing the way for a possible takeover of the ailing lender Hypo Real Estate.
The move comes after President Horst Koehler yesterday signed a law allowing the Government to seize control of struggling banks. It is expected to pave the way for a nationlisation of HRE.
The law allows the German government to expropriate shareholders in stricken banks for the first time in the post-war era. Tough times call for tough measures I guess.
Meanwhile EUR/USD continues trading very quietly, slightly easier at 1.323o as stocks dip lower. Technical supports lie at 1.3225 and 1.3195. resistance 1.3290/00.
