FRANKFURT (Dow Jones) – The extension of the warranty screen for Hypo Real Estate ( HRE ) could indicate a higher probability of failure than previously known.
Although only go so far to guarantee , an analyst Heino Ruland said on Monday at Dow Jones Newswires. However, the expansion is of worry, because the HRE CEO Manuela Better yet last Wednesday had spoken of a smooth distribution of the Group. See it now as if the risk would be greater than previously assumed that there will be real losses and thus come to a real burden on the taxpayer.
On the night of Saturday, the Federal Institute for Financial Stabilization of the warranty screen over the HRE by up to 40 billion to 142 billion EUR was extended. The Steering Committee of the rescue fund SoFFin confirmed before the weekend that with the new warranty screen liquidity shortages in the planned spin-off of bad bank FMS value management should be avoided.
"This is a highly complex and in view of the volume to be transferred is probably unique process , "said Hannes Rehm , Chairman of the Executive Committee on Friday evening in a press release. Unfavourable developments on the interest rate and credit markets and unpredictable settlement and transfer risks in the transmission could cause congestion , since the transmission comprehensive booking process with business partners in several countries embrace , he cited the reasons for this.
In the near future, toxic securities and not longer -core areas for 180 billion to 185 billion EUR will be transferred to the bad bank under the umbrella of the SoFFin. In the spin-off will move , all with SoFFin Guarantees securities on the FMS. Better had last week showed good courage, that the HRE Group 2011 – would be without the split-off areas – return to profitability .
The new screen was necessary guarantee for a report of " stern.de " half because of massive liquidity problems. This resulted , inter alia, increasing risk premiums on government bonds ailing euro countries. The situation was so serious that the bank in the worst case on 22 September would have become insolvent.
As for me, surprisingly , " designated Federal Minister Rainer Brüderle the new financial requirements of the HRE. He spoke at the same time for as rapid a withdrawal of government from the Institute. "I am no friend of state interests , " citing the "Financial Times Germany "( FTD ), in its Internet edition on Monday the minister. Since the HRE was systemic , the state could not withdraw neck over head. This must be done step by step.
By lap – Rüdiger , Dow Jones Newswires
+49 (0)69 29725 117, ruediger.schoss @ dowjones.com,
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