After a week long debate in the Senate/ House the United States answer to the the credit crises has been a $700 billion dollar bailout of the top investment institutions in the US. Many economist disagree with the bailout, as did most Americans.

Now it is Europe’s turn to deal with there own banks. Most of which have not be as heavily invested in toxic American mortgages, but are suffering because of the lack of liquidity in the market. And more so the lack of trust.

Breakdown:

• Germany will guarantee all private deposit accounts, estimated to be worth €500 billion ($679 billion).
• Denmark also bolstered protection of bank accounts and deposits
• Austria also said it will lift the guarantee on private deposits, although the government hasn’t yet decided how high the new limit will be
• Ireland is guarantee all debt and deposits until 2010 at six of the country’s banks, for an estimated cost of $578 billion
• Norway – commercial lenders had agreed to contribute up to 35 billion kroner ($6.4 billion) over two years to a fund that will help insure account holders from losses.
• Sweden said it would raise the limit for deposit insurance to 500,000 kronor ($71,000) from 250,000 kronor.
• The Icelandic stock exchange halted trading of six major financial institutions.
• Spain and France have announced plans to hold talks with top banks to discuss the unfolding global financial crisis

Germany, Europe’s largest economy, arranged a bailout for Hypo Real Estate Holding AG, a giant property lender that came close to collapsing after private lenders pulled out of an earlier €35 billion ($48.2 billion) aid plan last week after the lender’s liabilities were revealed to be larger than expected. Germany new plan is for the government and a group of commercial banks and insurers to inject €50 billion ($67.9 billion) into Hypo.

Belgium and Luxembourg government announced its intention to buy a 100% stake in Fortis’ local operations for €16.8 billion ($22.9 billion). This was a signal that the bank’s balance sheet was in more trouble than previously thought and spread panic to other institutions.

In Italy, the board of banking giant UniCredit announced that it would launch a €3 billion emergency capital increase.

“The crisis in Europe now has broadened from the implosion of U.S. mortgage-related assets to a mounting unwillingness among European banks to lend to one another and a growing loss of confidence among investors and in some cases depositors.”

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