Major bank failure in Germany

Hypo Real Estate, the second largest real estate lender in Germany, is circling the drain after an emergency rescue failed. They are about the size of Lehman.

The financial system cannot take another body blow of this magnitude. The authorities had better patch this one up over the weekend, or we face even more credit market panic on Monday.

Worse, this could apparently have profound effects on the Euro itself.

Could we just get through one weekend without the collapse of yet another major financial institution? Guess not…

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