The German finance ministry is working on a plan to nationalize banks when financial market stability is at risk, Reuters reports. Any banks nationalized would be done so at a price based on the average share price for the two weeks prior to nationalization.
Dealers are reacting negatively to the news, selling EUR/USD and EUR crosses. The assumption is the plan will have to be used before long. EUR/USD trades at 1.2792, EUR/JPY at 115.00 and EUR/GBP at 0.8886.
