European govts act as financial woes deepen

The global credit crunch deepened in Europe as government leaders pledged to bail out troubled banks and protect depositors.

BNP Paribas SA will take control of Fortis's units in Belgium and Luxembourg after government efforts to ensure the company's stability failed, while Germany's government and financial institutions agreed on a 50 billion euro ($68 billion) rescue package for Hypo Real Estate Holding AG UK Chancellor of the Exchequer Alistair Darling said Britain is "ready to do whatever it takes" to help its banks.

The developments on Sunday came a day after a summit in Paris where leaders of Europe's four biggest economies stopped short of a plan mirroring the $700 billion rescue in the US to counter the worst financial crisis since World War II. Instead, they agreed to work together to limit the economic fallout, ease accounting rules, and seek tougher financial regulations.