First Step Toward HRE Bank Nationalization
Germany made the first step toward HRE bank nationalization, by taking equity of 9%. German government made the first step in taking control of the bank building HRE, which had been previously announced, after the bank posted losses of nearly 5.5 billion euro in 2008.
Waited for several weeks and imminent after the Friday announcement that JC Flowers, the main shareholder, has withdrawn from the supervisory board, HRE nationalization began with the takeover of a nearly 9% for 60 million euro, by the federal fund of help banks (Soffin).
Soffin sent a letter of intent to HRE supervisory board, which is committed to take measures for a HRE re-capitalization, announced the bank.