BERLIN, Germany (CNN) -- The German government passed a draft bill Wednesday that will allow the government to forcibly nationalize ailing financial institutions.
In a news release, the German Ministry of Finance stated that measures taken so far have done a lot to stabilize German financial markets, but that as an "Ultima Ratio," the government will allow the forced nationalization of financial institutions by taking over shares at what the release calls "a reasonable price."
Forced nationalization is only possible if all other measures to stabilize the institution have failed. The process of nationalizing a bank must begin before June 30th 2009. This measure will be part of Germany's law to stabilize financial markets.
The German government is currently contemplating forcibly nationalizing the bank Hypo Real Estate which has already received 102 billion Euros from the government in loans and loan guarantees.