Hypo Real recieves €50 billion bailout
The German government, along with Deutsche Bundesbank, financial regulator BaFin and a number of German banking and insurance representatives, has agreed on a €50 billion rescue package for property lender Hypo Real Estate after an earlier bailout attempt collapsed last week over the weekend.
On September 29, the bank said it had agreed a €35 billion liquidity package. However, on Saturday banks and insurers withdrew their support, prompting last minute efforts to broker a deal before trading opened today.
Under the terms of the original deal, Hypo Real Estate was to write down its holding in Dublin-based subsidiary Depfa Bank, which was acquired in October 2007. The chief executive of Depfa, Paul Leatherdale, and Bo Heide-Ottosen, the company's head of long-term funding and treasury, both resigned with immediate effect on September 29.
See also: BNP to liquidate Fortis' €10.4 billion toxic assets
Bailouts fail to lift markets
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