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The Hypo Group and its Consultants

Published: January 18, 2011; 00:31 · (Vindobona)

In the months before and after the emergency nationalization of the Austrian Hypo Group, the Bank paid rich consulting fees despite all turbulences.

The Hypo Group and its Consultants / Picture: © Hypo Alpe-Adria-Bank International AG

With the emergency nationalization of the Carinthian Hypo Group in December 2009, the Pinkl era also came to an end, but not the high expenses incurred for consulting services.

Therefore, according to the daily "Der Standard", alone in 2009, when the BayernLB still was the main owner of the bank and Franz Pinkl the chairman of its board, an amount of € 60m was spent for consultation services. Criticism to this procedure was expressed already months ago. Pinkl justified himself by saying that it was not he who ordered these services, but the principal owner. The matter was a restructuring program.

A large amount of money in consultants' fees, however, were also paid beyond the time of BayernLB. In the first half of 2010, when the Republic of Austria was already the owner, consultations for € 29.6m were paid. A substantial part of it was used for the investigation team "CSI Hypo”. ”Der Standard” writes of an amount in excess of € 7m. The amount of fees expected forthe entire past year is € 60m.

The bank shows itself little communicative in this respect. No bank in the world likes to talk about its advisers and their professional fees. Currently, more than 100 consultants are said to work for the Hypo Group. The CEO says openly that the bank has been a money distribution machine in the past. Presently a “new hygiene” must be guaranteed.

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