EU regulators threaten to block €87bn rescue plan for Hypo


#1

I haven’t noticed a discussion on this here but if it has been covered please delete.

The really appropriate question is what will they say to NAMA when it comes before them especially if they have problems with this much simpler and more straightforward plan for a single bank in Germany.


#2

One thing I did learn from the DMcW Addicted to Money thing was what Depfa was actually up to. By looking at the Depfa site, you would think it was funding infrastructure projects - schools, hospitals etc. But what it was actually doing was arranging loans for speculation! It was financing leveraged bets on the asset bubble continuing.

Hypo, even without Depfa (i.e. without its off-balance items), was leveraged 99:1 by some accounts…


#3

Now that is interesting especially if the two Brians didnt get a promise of help prior to the yes vote.


#4

I think through all the spin I remember a promise of sorts of support from Angela and the EU were supportive in principle which are very different to real support. The EU could be the stickiest problem of all for NAMA, as spin and bluster doesn’t work so well Strasbourg.

Aside: from the same article, it’s good to see that financial skullduggery is alive and well in Germany as well


#5

Yeah, McWilliams on Depfa was informative…

Did he mention a 66Billion bail out… No wonder the Germans are pissed off… which I was under the impression had already happened… is the 87B on top of the depfra bailout or is it included?


#6

irishtimes.com/newspaper/fin … 27333.html