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
Disclaimer
The information provided on this website is for general informational purposes only and does not constitute legal, tax, financial, or professional advice. While we strive to ensure accuracy and completeness, no guarantee is given regarding the timeliness, correctness, or completeness of the content. The content does not replace individual advice from qualified legal, tax, or financial professionals. Any actions taken based on the information provided are done at the user’s own risk. Liability for any direct or indirect damages arising from the use or non-use of the information presented is excluded to the fullest extent permitted by law.
(Image rights: istockphoto.com/Meinzahn)
Comments are closed here.