Hypo Group: Worst Expectations May be Exceeded

Politics ♦ Published: October 25, 2013; 20:58 ♦ (Vindobona)

For the Austrian state, the ailing nationalized banking group may become a financial GSA. The legal dispute with the former owner BayernLB bears enormous dangers for Austria´s public finance.

Hypo Group: Worst Expectations May be Exceeded / Picture: © Wikipedia / JJ55 (30 March 2008)

In May 2007, German BayernLB acquired Hypo Group. In 2007 and 2008, BayerLB accelerated the aggressive growth strategy in the Balkan region. In the years from 2002 to 2008, Hypo Group expanded its branch network drastically in Southeastern Europe. In this period, total assets were up from € 10bn to € 44bn.

he European Commission criticized that the business model of Hypo…