• Germany's news in English

Merkel welcomes greater self-regulation by banks

AFP · 14 Apr 2008, 11:00

Published: 14 Apr 2008 11:00 GMT+02:00

Facebook Twitter Google+ reddit

Merkel said in a newspaper interview that as head of the G8 and holder of the European Union rotating presidency in 2007, Germany had "worked intensively" for greater transparency in the global financial system.

"Today I notice that the economy is learning from the financial crisis and is now taking on board our initiatives for self-regulation," Merkel told the Frankfurter Allgemeine Sonntagszeitung.

"What a year ago was dismissed as state intervention is now seen as necessary transparency measures for the financial industry."

Josef Ackermann, head of Deutsche Bank, the country's only heavyweight in international finance, last week conceded for the first time that the banking industry was in large part to blame for the current credit crisis.

Last year large numbers of US homeowners began defaulting on risky home loans that banks had repackaged as complex financial instruments. These have now blown large holes in banks' balance sheets, leading to what IMF head Dominique Strauss-Kahn this weekend called the worst crisis since the 1930s.

But banks have rejected calls for closer regulatory scrutiny, arguing that they have taken lessons from what has happened and that they are able to police themselves Merkel also said that there was no reason for Germany to fear an economic crisis.

Story continues below…

"Thanks to the competitiveness of our companies the German economy is so robust that I see no reason to fear a crisis," the conservative chancellor, in power since 2005, said in the interview.

Her comments appear to be borne out by recent data showing that Europe's largest economy is holding up well despite a slowdown in the United States, higher commodity and energy prices and a strong euro.

Facebook Twitter Google+ reddit

Today's headlines
These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd