Hypo Real Estate needs more state aid
Stricken German bank Hypo Real Estate will need more state support even after a capital increase the German government is pushing through to take full control of the lender, its chief executive said.
“There is a need for more capital after the capital increase that the general meeting will address on Tuesday,” Axel Wieandt told the Frankfurter Allgemeine Sonntagszeitung Sunday paper.
The exact amount had to be agreed with the government’s SoFFin financial sector rescue fund, he added. Caught out by the debt market crisis that exposed its refinancing weakness, loss-making HRE has become Germany’s biggest casualty of the financial crisis.
It has already been propped up by 102 billion euros ($142.7 billion) in guarantees, mostly from the state, for fear its collapse could have a domino effect on the financial system.
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