Germany: the State to bailout a tottering giant...

The German government and banks have agreed a 50bn euro ($70bn; £40bn) plan to save one of the country's biggest banks, the finance ministry says. 

The news comes after Chancellor Angela Merkel said she would do all she could to save faltering Hypo Real Estate. 

The government and the banks have found an extra 15bn euros after the collapse of a previous rescue plan. 

Meanwhile, French giant BNP-Paribas has confirmed reports it is to take over the troubled Fortis bank, AFP reports. 

Prime Minister Yves Leterme says the Belgian and Luxembourg governments will in turn take a blocking minority share in BNP-Paribas, according to the AP news agency. 

The Iceland government is also working overnight to try to shore up its entire banking system.

Earlier, Ms Merkel moved to reassure German savers that all their deposits would be safe. More...

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