german 480 billion euro bailout

While a lot of noise was being made about the american bailout, the German parliament has hastily approved a 480 billion euro (approx. $650 billion) rescue plan for the financial sector, even though there is not as much of a mess as in the USA., (but the economy sure seems to be slowing down to a crawl)
Most of the money is for lending guarantees for banks and some of the money may be spent on buying up risky assets.
A major difference seems to be that banks participating in the plan will have to obey government conditions on executive pay, directions on lending, more government oversight etc.

At the same time the german government does not seem inclined to help bailout the beleagured carmakers in the auto sector.


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US govt. might buy stake in several banks

It seems that the U.S. government/treasury is getting ready to buy an ownership stake in a broad array of American banks. This seems to be for the first time since the last great depression .
According to the treasury secretary, this "program would be designed to encourage the raising of new private capital to complement public capital". But it seems that they only wants to buy nonvoting shares . It seems that a broad intervention might represent a vote of no-confidence in the entire banking industry and not just some troubled institutions. Hopefully at least some strings regarding compensation of top executives could be attached to the buy , but I very much doubt if that will happen.
Earlier, Britain had also started a sort of partial nationalization of its troubled banks by allowing them cash in exchange for stakes in the banks.