Hypo Real Estate gets 40 bln in extra guarantees

[BoyRacer]

Hypo Real Estate gets 40 bln in extra guarantees → reuters.com/article/idUSLDE6891VX20100910

• To set up a bad bank

• Current guarantees of 102 bln eur mostly used up

• Additional guarantees to be limited to 3-month period

FRANKFURT, Sept 10 (Reuters) - Bailed-out German bank Hypo Real Estate [HRXGe.UL] (HRE) will temporarily receive an additional 40 billion euros ($51 billion) in guarantees to set up a bad bank, the national bailout fund Soffin said on Friday.
The total volume in guarantees will increase to 142 billion euros to avoid liquidity shortages at HRE, Soffin said.
HRE, whose business model combined investment banking with real estate finance, was nationalised last year after it became Germany’s highest-profile casualty of the credit crunch.

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