German Bank Rescue Fund Closes Last Outstanding Debt Guarantee → businessweek.com/news/2013-1 … -guarantee
Germany’s bank rescue fund, set up after credit markets seized in 2008, said its last outstanding liquidity guarantee expired.
A 1.1 billion-euro ($1.5 billion) bond issued by Duesseldorfer Hypothekenbank AG, which was guaranteed by the fund, matured today, Soffin, as the Frankfurt-based bank backstop is known, said in an e-mailed statement. Lone Star Funds, a U.S. buyout firm, acquired the mortgage lender in 2010.
Five years after the collapse of Lehman Brothers Holdings Inc., Germany is recouping taxpayer funds it committed to stop turmoil in financial markets from wrecking the wider economy. The return of equity and guarantees comes as Finance Minister Wolfgang Schaeuble wrangles with his European peers over how to bear the cost of future bank failures in the euro area.
there is more
jmc
December 15, 2013, 6:31pm
2
So that just leaves the 330 billion Depfa bad bank to be paid off then…
Which should be paid off about the same time as the last German WW1 repartition bond.
grumpy
December 15, 2013, 9:17pm
3
Thanks JMC. Interesting to wind through the detritus left behind by Hypo and Depfa. Seems to be smaller than 330B -
FMS reduced its stock of loans, bonds and other financial products to 128.5 billion euros ($174 billion) at the end of June, bringing the total reduction to 27 percent since its formation in October 2010, the Munich-based company said in an e-mailed statement today.
bloomberg.com/news/2013-10-0 … -6-1-.html
Is there more elsewhere?
The reports for FMS are here
fms-wm.de/en/downloadcenter/ … 16-reports
jmc
December 16, 2013, 7:41am
4
grumpy:
Thanks JMC. Interesting to wind through the detritus left behind by Hypo and Depfa. Seems to be smaller than 330B -
FMS reduced its stock of loans, bonds and other financial products to 128.5 billion euros ($174 billion) at the end of June, bringing the total reduction to 27 percent since its formation in October 2010, the Munich-based company said in an e-mailed statement today.
bloomberg.com/news/2013-10-0 … -6-1-.html
Is there more elsewhere?
The reports for FMS are here
fms-wm.de/en/downloadcenter/ … 16-reports
Hypo / Depfa was only half the stinking carcasss. Remember West LLB? Almost as big as the Hypo mess.
Well last year they dismembered the body of that particular bad bank with a chain saw and hid the various parts around the German banking system…
reuters.com/article/2012/07/01/us-westlb-breakup-idUSBRE8600FX20120701
As came out during the whole oops we lost 40B in collateral / no it was actually under a filing cabinet the whole time episode a few years ago (where they had to readjust the German national debt by a few percent) the German bad bank saga makes the Enron accounts department look like a model citizen of financial transparency.
Remember that the next time some German starts lecturing the naughty Eurozone countries about financial prudence. And yes, Deutsches Bank is still technically insolvent. And yes, DB is still underwriting most of the German “export miracle” with ultra cheap export financing. Thats German financial rectitude for you.
Depfa Bank to be sold at 6pc of its 2007 valuation - Donal O’Donovan → independent.ie/business/worl … 76077.html
German bank Hypo Real Estate has attracted bids of between €200m and €350m for its IFSC-based Depfa Bank unit, according to news agency Bloomberg.
there is more