Hypo Group too Expensive for BayernLB

Politics ♦ Published: April 7, 2014; 18:43 ♦ (Vindobona)

According to an official expert, regional German lender BayernLB’s fatal decision to take over Hypo Group Alpe Adria was based on questionable company evaluations.

Hypo Group was overpriced when BayernLB purchased its stake. / Picture: © BayernLB

According to Professor Bernhard Schwetzler of the Commerical University Leipzig, the Carinthian bank was much too overpriced in the first of several reports. During the criminal proceedings at the Regional Court in Munich Schwetzler pointed out that profits were “practically counted twice”: both for the increasing of the reserves of the banks and for the distribution to equity…