Monday, September 29, 2008
Northern Rock, B&B, Fortis and Hypo – who’s next? (oh no surely not RBS)
Shares in German lender Hypo Real Estate plunged after it struck a loan deal with a consortium of German banks. Its shares lost three-quarters of their value, falling to 3.39 euros, before a slight revival to 63% down at 5 euros. The firm did not reveal the names of the loan banks, or even the deal amount, which may be up to 35bn euros (£27.8bn,$51.21bn) say media reports. Hypo has been badly affected by the financial markets crisis as it borrows heavily from the interbank market. It is thought the deal has ensured financing for the Hypo until the end of next year.