Hypo Real Estate

Germany’s troubled Hypo Real Estate bank, which narrowly avoided bankruptcy last year before being nationalized requests 40 billion euros more from state aid.

Hypo Real Estate held 7.9 billion euros in Greek Government bonds in march citing data  from the European Union’s stress test published last month

The commission said that Not only would debt restructuring come at very high costs for Greece, but also in other euro-area countries that would suffer high costs.

The news was confirmed on Stern’s website on Friday. Stern also reported that the banks involvement in euro zone countries that were hit big by the economic crisis and the straightening of the dollar alongside the declining interest rates, exposed the bank even more. Germany weekly reported that Germany’s banking sector stabilization fund would reach a decision on Friday evening. SoFFin had no comment on the report. HRE received so far 7.85 billion euros in cash from the SoFFin, the german stabilization fund for the financial market along with 103.5 billion euros in loans guarantees. HRE failed the europe wide stress tests in july, being the only german bank to do so. In late 2008 amid a global crisis due to some mistakes made by it’s german_irish subsidiary Depfa. After a long battle with approaching bankruptcy, it was nationalized.