Madrid  - Spain could "continue being proud" of its financial system, Economy Minister Pedro Solbes said Monday, one day after the government announced its decision to bail out the savings bank Caja Castilla La Mancha (CCM).

It was the first such rescue in Spain during the global financial crisis, and made the government's constant reassurances about the solidity of the banking system ring increasingly hollow.

Munich  - Ailing mortgage lender Hypo Real Estate (HRE) needs further capital injections from the German state after a loss of more than 5 billion euros (6.7 billion dollars) in 2008, chief executive Axel Wieandt said Sunday.

HRE had confirmed Saturday that the German government is to recapitalize the bank with an initial 8.7-per-cent share purchase.

Wieandt was not able to confirm how much capital the bank needed,

but said this was to be discussed with government bank bail-out agency SoFFin, which is expected to take long-term control to rescue the mortgage lender.

Munich  - The German federal government is to buy shares of ailing mortgage lender Hypo Real Estate (HRE), the bank announced Saturday.

The state is to initially recapitalize the Munich-based financier by purchasing an 8.7-per-cent stake in the business, HRE said in a statement.

In the long term however, the German government bank bailout agency SoFFin is to take complete control of the bank, HRE said.

Washington  - Some of the nation's top bank chiefs told President Barack Obama Friday that they would work with him towards the economic recovery, and agreed on the need for an overhaul of financial market regulations.

"Were all in this together," John Stumpf, the head of Wells Fargo & Co, was quoted as saying by Bloomberg financial news service after the meeting. "Were trying to do the right thing for America."

Washington - US President Barack Obama was to court support from banking executives later Friday in an effort to transcend the furious standoff between the public and the industry over bailouts and bonuses.

The meeting at the White House was to include chief executive officers Vikram Pandit of Citigroup Inc, Jamie Dimon of JPMorgan Chase & Co and Lloyd Blankfein of Goldman Sachs Group Inc.

A total of 15 executives from the nation's largest banks were to join the meeting, Bloomberg financial news service reported.

Wellington - New Zealand's deepening recession was confirmed Friday when official figures were released showing the economy had contracted for the fourth consecutive quarter last year.

Gross domestic product (GDP) was down 0.9 per cent in the December quarter, Statistics New Zealand said, with a 3.8 per cent slump in manufacturing the main contributor.

The one bright feature of the report was a 4-per-cent rise in agricultural output in the last quarter, driven by increased production of dairy products, which account for about