As Europe’s leaders met to discuss the global credit crisis German bank Hypo Real Estate was fighting for its survival.
The company is on the verge of collapse after a private consortium of German banks and insurers pulled the plug on a 35 billion euro rescue plan.
Aimed at providing Hypo Real with the vital funds it needs to continue operating, the withdrawal of the bail-out is thought to have taken the German government by surprise.
And, the effects of the world financial crisis were being felt in other parts of Europe’s banking sector with Belgium and Luxembourg searching for a buyer for the ailing bank Fortis.
The move follows the Netherlands decision yesterday to nationalise all the company’s Dutch assets.
The break up of the cross border group comes less than a week after the three governments offered an initial rescue deal of more than 11 billion euros.