Shareholders of collapsed German lender Hypo Real Estate have been protesting at a meeting called to force them to sell their stock to the German government completing its nationalisation.
They included one woman who had bought 100,000 euros worth of shares as an investment for her disabled child. The Berlin government is offering just 1.30 per share which would make her investment worth only 7,000 euros Before the meeting she told reporters: “My child is innocent, they’re taking money from an innocent child. And that’s because some irresponsible bankers gave unsecured loans.” Hypo’s new boss said it is not likely to return to profit before 2012 and will need a further ten billion euros in capital to keep going. CEO Axel Wieandt told the meeting: “As you know, the government rescue fund made it a condition for giving further support that Hypo be completely nationalised. The state was and is the only available source of funding. I’ve already explained that at the last two shareholder meetings.” Three billion of the ten billion needed has already been agreed. It will increase the bank’s capital and cover past and future losses. That is on top of the more than 100 billion euros of government support Hypo has already received after the global financial crisis pushed it to the brink of bankruptcy.