Hypo Real Estate notches up 3.1 billion euro loss in 3rd quarter
BERLIN (AFP) — The troubled German property lender Hypo Real Estate (HRE) announced Wednesday a net loss of 3.1 billion euros for the third quarter of 2008 on the basis of results to be endorsed by its supervisory board.
At the end of October HRE obtained 15 billion euros (19.3 billion dollars) in state loan guarantees under a government rescue plan for the banking sector, a spokesman said.
The real estate specialist has been caught in a liquidity crunch that worsened after the US investment bank Lehman Brothers declared bankruptcy in mid September.
It had already benefited from a rescue plan worked out by the government and the German central bank worth 50 billion euros.
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