Hypo Real recieves €50 billion bailout

Under the terms of the deal, which were settled in talks yesterday, the government will contribute €20 billion of liquidity, while the finance sector will double the €15 billion promised previously.

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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