Hypo Group: Already a “Catastrophe“ in 2006

Published: April 28, 2014; 19:51 · (Vindobona)

In the court proceedings against the former member of the supervisory board of regional lender BayernLB former head of Hypo Group’s board Wolfgang Kulterer called the situation Hypo was in a “catastrophe”.

Court proceedings against former BayernLB board members continue. / Picture: © Vindobona.org

According to former chairman of Hypo Group’s supervisory board Kulterer, the Austrian bank was in a disastrous state shortly before the take over of German regional lender BayernLB. “A catastrophe to say the least,” Kulterer said on Monday as a witness in the proceedings against former members of BayernLB’s board at the Regional Court in Munich about the state of Hypo Group in 2006. According to Kulterer, then-CEO Werner Schmidt had known about this, and therefore shown no interest in Hypo Group at a meeting in 2006. “We think Hypo Group Alpe Adria is too bad,” Schmidt is supposed to have said and rejected taking the bank over.

The interrogation of Kulterer was supposed to take place in March already. However, because of health problems, the court date was postponed. Among other things, Kulterer was sentenced to several years in prison. However, before facing the prison sentence Kulterer was summoned to the court by the judges in Munich.

The court proceedings against former board members of BayernLB was continued on Monday after a three-week break. The public prosecusion accuses the former board members of breach of trust because of taking over Hypo Group despite the risks. However, all six accused have rejected the accusations.