Hypo Real Estate, Germany's second largest property lender, has named its chief operating officer Cyril Dunne as the permanent CEO of Depfa Bank, the group's Dublin-based infrastructure and public lending subsidiary. The supervisory board of Hypo Real Estate appointed Frank Krings to replace Dunne as the group's chief operating officer.
Hypo Real Estate, Germany's second largest property lender, has named its chief operating officer Cyril Dunne as the permanent CEO of Depfa Bank, the group's Dublin-based infrastructure and public lending subsidiary. The supervisory board of Hypo Real Estate appointed Frank Krings to replace Dunne as the group's chief operating officer.
Dunne has been acting CEO of Depfa since Septemebr this year when Paul Leatherdale resigned after a year in the position and left the Hypo group. Leatherdale's resignation came as Hypo Real Estate reached agreement with a public-private consortium in Germany on a EUR 35 bn lifeline. Bo Heide-Ottosen, a member of the boards of both Hypo Real Estate and Depfa, also resigned from all his positions.
Days later as its liquidity position worsened, Hypo Real Estate had to negotiate an enhanced EUR 50 bn facility with the consortium made up of the federal government and financial institutions. Within 24 hours CEO Georg Funke resigned and was replaced by Axel Wienandt.
The group's supervisory board subsequently appointed legal firm Milbank Tweed Hadley McCloy to examine a possible breach of duty by Funke and Heide-Ottosen. A spokesman stressed that there were no specific allegations against the men.
