Germany in no need for German Financial Rescue Plan like America
According to Mr. Ulrich Wilhelm who is a government spokesperson, the government of Germany felt no need for establishing a rescue package just like America did in order to face the crisis of financial market. He also added that for them there are dissimilarities concerning the liabilities and results, thus according to the government point of view there is no need for such actions.
At the government’s press meeting Mr. Ulrich justified the way American government acted. American government’s point of view agrees with the federal government on the measures taken that will eventually assist in easing up the financial market pressure. The American financial market makes a little impact on the financial market of Germany but at the same time the steadiness of the American financial market is also very important for them.
Mr. Ulrich also added that the both the government and central banks of seven of the foremost industrial countries are in touch about the issue. On the other hand German Finance Ministry spokesperson Mr. Torsten Albig was of the view that America’s official request is still pending. Mr. Henry Paulson who is the Treasury Secretary, has suggested a $700 billion plan to make the country’s poor financial sector steady and also suggested that other countries should follow Washington supposed banks’ bad mortgage debit.
There are probabilities that G7 finance ministers might organize a conference. Mr. Ulrich felt that there should be some global guidelines as only one country’s national guidelines are just not sufficient to deal with such issues. Mr. Torsten repeated that Germany is right on his part asking about the financial markets transparency. When in the previous year the presidency of Group of Eight foremost countries took place this issue was given the topmost priority.
On this same press meeting, Mr. Torsten said that in the beginning Anglo-American partners were opposing this. They maintained a distance in the year 2007 and at the time of the financial problem they again left us and now they are again making a comeback. Mr. Torsten also added that the planning that also includes Financial Stability Forum are some resolutions in order to prevent the future issues like this. Since the early year of 2007 the discussions have concentrated on preventing future unknown issues like- capital conditions, better hedge fund transparency, and ratings agency actions.
Mr. Torsten said that we have to put trust in that this will be the last financial problem. Germany, in the previous year during their G8 presidency organized a code of conduct for instantly increasing hedge fund industry but was unsuccessful to gather support from members of G8- Japan, Britain, and America.