Depfa is for sale: Legacy of the financial crisis

The FMS value management, the institution in 2010 as a settlement (“Bad Bank“) of the Bank Hypo Real Estate, reached in the financial crisis, notoriety, was fou

Depfa is for sale: Legacy of the financial crisis

The FMS value management, the institution in 2010 as a settlement (“Bad Bank“) of the Bank Hypo Real Estate, reached in the financial crisis, notoriety, was founded, the Depfa Bank for sale. Depfa (originally German pfandbrief Institute) was taken over in 2007 by Hypo Real Estate, and had contributed much to their downfall, because they had invested heavily in American mortgage-backed securities.

Martin Hock

editor in the economy.

F. A. Z.

The Irish-based Depfa is primarily designed as a state financier. The FMS had reduced following the Acquisition of Depfa in the year 2014 the balance sheet total of € 48.5 billion to 8.9 billion. The Portfolio Mainly consists of loans and government bonds of West European borrowers, especially in Germany. (Dec 2019). The so-called CET1 ratio is 152,3 percent.

All Overseas-resolved branches have been closed, currently, all of the other "strategic" locations. The Bank had 111 employees. Offers can 3 to of the. August will be submitted to the Advisory Barclays Bank.

The Depfa was originally established in 1922 as a Prussian country pfandbrief institution for the financing of the retail housing construction was launched in 1951, the name of Deutsche pfandbriefanstalt. By 1954, the Bank was in the possession of the Federal government, the Prime Minister in 1991 through an initial public offering for the equivalent of about 275 million euros in private. 10 years later, the Depfa split the real estate financier Aareal Bank. The remainder of the Depfa made especially transactions through maturity transformation, i.e. the short-term loans and Issuance of long-term financing.

in 2007, the Hypo Real Estate took over the Depfa for a total of 5.2 billion euros. The refinancing difficulties of the Depfa significantly contributed to the precarious situation of the Hypo Real Estate in September 2008. Alone Depfa Bank needed to be about 10 billion euros in financial assistance.

On the 13. May, 2014, decided the steering Committee of the financial market stabilisation Fund SoFFin to sell, contrary to the original planning, the Bank – to make the entire lending business of Depfa in the value of around 34 billion euros in unwinding by the state-owned Bad Bank FMS wertmanagement.[3][10] The Chairman of the Board of the HRE, Manuela Better, had prepared a sale of Depfa for the last 320 million euros and resigned in this context. The FMS value management has on 19. December 2014 Depfa Bank.

The Hypo Real Estate (HRE) was, in turn, been of the with bad property loans in distress, struggling, Hypovereinsbank (HVB) as a real estate Bank, is cleaved. To this end, the HVB of their time dedicated a large part of a capital increase (approximately € 900 million), in order to provide the HRE with sufficient capital. Urgent restructuring in need of the in the Hypo Real Estate Bank Germany was at the time. bundled deutsche's Portfolio, for the HRE of the HVB for 2003 and 2004, received a default guarantee of EUR 590 million.

Updated Date: 14 July 2020, 03:20

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