Berlin - German Chancellor Angela Merkel's government still hopes to avoid a complete nationalization of troubled mortgage lender Hypo Real Estate (HRE), a Berlin spokesman said Monday.
The government believed that a complete state takeover of a bank would be the final resort in efforts to help stabilize a financial house under pressure, government spokesman Ulrich Wilhelm said.
Speaking on German television over the weekend, Merkel had declined to rule out nationalizing HRE, which has emerged as one of Germany's most high-profile casualties of the financial crisis triggered by the US mortgage market upheaval.