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.
The week on Risk.net, July 7-13, 2018Receive this by email