Ten years ago: State takeover of Hypo Real Estate
On 5 October 2009, Hypo Real Estate (HRE) fell into state hands; just under a year later, the remains of the Munich-based financial institution became «FMS-WM». Around 176 billion euros in non-performing loans were transferred to the newly established bad bank and gradually disposed of: real estate loans, ship investments or even government bonds. At the end of 2018, the book value of the NPLs was 69 billion euros.
In July 2007, shortly before the outbreak of the financial crisis, HRE had taken over the Irish Depfa Bank from Dublin – for a proud 5.2 billion euros. As it turned out shortly afterwards, this was the death blow for the Munich-based finance company. The then CEO Bruckermann received the equivalent of 120 million euros in shares from the deal. In 2020, the Irish bank is to be sold for a three-digit million sum. ZDFheute, Irish Times