The German federal government is to buy shares of ailing mortgage lender Hypo Real Estate. It is one step closer to nationalizing ailing commercial lender after the lower house of parliament approved a new law that allows expropriating shareholders if necessary.
Germany's Bundestag lower house of parliament approved a law on Friday that will give the government power to take control of banks hit by the financial crisis. The law, drafted to allow Berlin to take over stricken lender Hypo Real Estate (HRE), gives the state power to expropriate shareholders in financially troubled banks.
Munich-based Hypo Real Estate has been ravaged by the financial crisis and has received some ?euro87 billion in government loan guarantees since September, 2008. The Group has received a total of ?102 billion in guarantees from the state and fellow banks but its financial condition remains uncertain.
[221] 29.03.2009 Source: Banking News
Popular News
French Bank to Repay Government Bailout - 14.10.2009 Crédit Agricole, the French bank, said Wednesday that it would repay the €3 billion of debt the government bought last December, becoming the latest big bank to pay back a bailout. Source: New York Times
Card fraud in the UK falls by 23% - 08.10.2009 The amount of money being lost through card fraud fell by 23% in the first half of the year in the UK, as criminals changed their strategies and prevention measures began to take effect, according to figures published today. Source: Guardian.co.uk
The trend: large banks will acquire smaller banks - 18.09.2009 KBW Inc., the New York-based boutique that advises financial institutions, expects 500 to 1,000 U.S. banks to fail by 2011, Chief Executive Officer John Duffy said. Source: Bloomberg
Colonial Banc Group declares bankruptcy - 15.08.2009 Colonial became the largest US bank to fail this year after it was declared bankrupt and had the bulk of its assets taken over by rival BB&T, the government banking insurer said Friday. Source: Agence France-Presse
Fighting economic crisis in U.K. - 27.07.2009 Current economic difficulties in U.K. were caused by global financial crises and have resulted into the following changes in the country's economy in 2007-2008: Source: BanksDaily.com
The European Central Bank injects €442 billion into banking system - 25.06.2009 The European Central Bank (ECB) allotted €442 billion to banks for 12 months, the biggest amount it has ever given in a single auction. The amount was more than most economists had expected. Source: RTTNews
The German federal government is to buy shares of ailing mortgage lender Hypo Real Estate. It is one step closer to nationalizing ailing commercial lender after the lower house of parliament approved a new law that allows expropriating shareholders if necessary.