Axel Wieandt resigns as CEO of Hypo RE after management clash with Soffin

Axel Wieandt resigned has unexpectedly as chairman of the management board of Hypo Real Estate after a clash with the German bank rescue fund Soffin about the management of the nationalised property lender. Hypo RE is the holding company of the troubled German commercial property lender which operates under the name Deutsche Pfandbriefbank.

Soffin issued the initial announced the resignation yesterday afternoon without giving a reason for Wieandt's decision. Hypo Real Estate later issued a statement saying Wieandt had offered his resignation to the supervisory board on Thursday due to differing views with the Soffin regarding the management of the company.

Bernd Thiemann, chairman of the supervisory board, said: 'Dr. Axel Wieandt took on the responsibility of CEO at the height of the crisis and has made a significant contribution to the stabilisation and realignment of the company. A course has been clearly set for the future.'

Manuela Better, head of risk management at HRE, has been named as Wieandt's interim replacement.

Wieandt, formerly global head of investment at Deutsche Bank, took the helm at HRE in October 2008 following the resignation of his predecessor Georg Funke. The banking group was on the edge of collapse due to the credit crisis and was only saved by a massive government-led rescue package. The HRE Group was effectively nationalised last year.'