Seminar paper from the year 2009 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1, 0, European School of Business Reutlingen, language: English, abstract: The current financial crisis has caused governments and central banks to compete,
who will achieve the biggest bail-out- and economic stimulus package including the
lowest interest rates. These are supposed to slow down the worldwide recession and
avoid a deflation. The current crisis has parallels to the "great depression" in the
1930th and therefore is also called the "great re-pression".
The German Government has also installed a safety shield, worth 480 billion Euro for
financially suffering banks and financial institutions.
Thus, the Financial Markets Stabilization Act was created. It only took a week to pass
the bill which is unknown off in Germany and therefore shows the importance of this
law. It enables the government to act further than the German Basic Law would
allow.
The Commerzbank was the first German bank to claim a part of governments help.
This was due to high losses in the 4th quarter of 2008 and the acquisition of Dresdner
Bank.

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