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Treadmill at the Frankfurt Stock Exchange.
The Hypo Real Estate share was once considered a safe investment.
Photo: A3602 Frank Rumpenhorst / dpa
The bankruptcy of Bremer Greensill Bank has consequences for the federally owned Hypo Real Estate Holding: Its bosses Wolfgang Groth and Jochen Heuchert had to leave the holding, which emerged from Hypo Real Estate (HRE), before the contract expired. You had invested 75 million euros in Greensill for the holding company. Greensill was the sponsor and guarantor of the British company of the same name, which specialized in the financing of supplier liabilities.
At the beginning of March, the parent company in London collapsed due to dubious business, then the German financial regulator Bafin had to close the Bremen subsidiary.
Thousands of investors had deposited money there at above-average interest rates, including HRE Holding.
Around 20,500 investors have now been compensated with 2.7 billion euros, but not HRE: The Federal Association of German Banks (BdB) classifies the holding company as a financial institution whose deposits are not covered by private deposit protection according to the statutes.
The HRE stands in a row with cities such as Monheim, Eschborn and Wiesbaden, which also had double-digit million amounts parked at Greensill Bank and are not part of the deposit insurance.
HRE, on the other hand, sees itself as an asset manager and raises claims.
The main purpose of their existence is to meet the legal demands of creditors of the old HRE.
According to the 2019 annual financial statements, she has 1.3 billion euros available for this - money that is conservatively broadly invested in fixed-income securities with very good credit ratings and time deposits that are subject to deposit protection.
The Federal Finance Agency, which manages HRE, did not want to give any details for legal reasons, but assumes that HRE is entitled to compensation from the deposit insurance with regard to the investment at Greensill Bank.
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