Saturday, January 31, 2009
Germany is going to nationalize Hypo Real Estate
By Sidney Perez.
Germany was moving closer today to nationalizing troubled property lender Hypo Real Estate Holding AG as the government said details are still being discussed.
The government has “no final answer” to proposals that have been made on the lender’s future, Torsten Albig, Finance Minister Peer Steinbrueck’s spokesman, said at a government press conference. A solution will be “very complex.”
The government may buy as little as 70 percent in Hypo Real estate and could also end up taking over the company entirely, two lawmakers that help control SoFFin, the body that manages Germany’s 480 billion-euro ($615 billion) bank rescue fund, said. They were speaking on condition of anonymity after a meeting attended by Axel Nawrath, who heads SoFFin’s steering committee.
Hypo Real Estate Chief Executive Officer Axel Wieandt backs the government taking a stake in the lender and wants it done quickly, he told Sueddeutsche Zeitung in an interview published today. Hypo Real Estate could pose “grave risks” for the entire financial system, he said.
Click to read more