Major German bank close to collapse

BERLIN, Oct. 5 (UPI) -- The second-biggest mortgage lender in Germany appeared close to collapse after an effort to shore it up failed Saturday.

A spokesman for Hypo Real Estate said a consortium of banks refused to provide the $50 billion required by a government-sponsored rescue plan, the BBC reported.

Analysts said they believe Hypo is within a few days of failure. Government officials and banking representatives were expected to meet Sunday to discuss alternatives.

Hypo Real Estate has been hit hard by bad debt and the credit squeeze.

Also Saturday, French President Nicholas Sarkozy held a meeting of leaders of the major European economies in Paris. France, Italy, Germany and Britain agreed to support the financial system while stopping short of the drastic measures approved by the U.S. Congress this week.

"I want the message to go out from this meeting today that no sound, solvent bank should be allowed to fail through lack of liquidity," British Prime Minister Gordon Brown said.