Austria rescues HGAA to avoid run on funds

The Austrian government nationalised Hypo Group Alpe Adria, the country’s sixth largest bank by assets, on the 14 December 2009, as authorities took action to avoid its collapse and risk undermining confidence in the region’s lenders.

Austria will take over 100% of HGAA after BayernLB, the German Landesbank, Grawe, the Austrian insurer, and the Austrian province of Carinthia agreed to give up their shareholdings and inject about €1bn in capital.

ESO: Background information: Recession exposes rift in Austrian banking http://www.europeansources.info/record/recession-exposes-rift-in-austrian-banking/

ESO: Background information: Press Release: State aid: Commission opens in-depth investigation into aid package for German Landesbank BayernLB and its Austrian subsidiary Hypo Group Alpe Adria http://www.europeansources.info/record/press-release-state-aid-commission-opens-in-depth-investigation-into-aid-package-for-german-landesbank-bayernlb-and-its-austrian-subsidiary-hypo-group-alpe-adria/

Deutsche Welle, 14.12.09: Austrian government announces plan to take over subsidiary of troubled German bank http://www.dw-world.de/dw/article/0,,5011630,00.html

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