Quick approval eyed for German bank rescue plan

BERLIN (Reuters) - Germany's rescue package for its financial sector is due to be adopted "in the next few days" using accelerated legal proceedings, and may be worth up to 400 billion ($549 billion) euros, according to media reports.

A fast-tracked law is being drawn up for approval by the upper and lower houses of parliament and President Horst Koehler to enable the German measures to take effect as soon as possible, weekly magazine Der Spiegel said on Saturday.

In its response to the global financial crisis, Germany is considering a British-style package that would offer the finance industry interbank guarantees worth "triple digit" billions or direct loans, according to various German media.

German business daily Handelsblatt said on Saturday that one expert in the ruling coalition had estimated the German rescue package was worth around 300-400 billion euros.

Chancellor Angela Merkel's government is also mulling the injection of equity capital worth "double digit" billions, the reports say. Handelsblatt said this sum could be in the region of 50 to 100 billion euros, citing coalition sources.

In exchange for the money, the government would take stakes in banks, according to the reports.

A source close to the French presidency said leaders of the euro zone countries would discuss the possible creation of a bank rescue package which will take Britain's initiative as a reference when they meet on Sunday.

Finance Minister Peer Steinbrueck said on Friday that the German government was working on a comprehensive plan, but did not elaborate on it, noting only that there would be "very rigid requirements placed upon those we would be helping."

Steinbrueck said that by Monday at the latest a signal would need to be sent "to calm things down, a signal to win back credibility and confidence in Germany."