Germany's financial market stabilization fund SoFFin said on Thursday it had created an external holding pool, or 'bad bank', to which it would transfer up to EUR 210 bn in toxic assets from troubled real estate financier Hypo Real Estate.
Germany's financial market stabilization fund SoFFin said on Thursday it had created an external holding pool, or 'bad bank', to which it would transfer up to EUR 210 bn in toxic assets from troubled real estate financier Hypo Real Estate.
SoFFin announced plans to create such a holding pool for Hypo RE assets in January. The transfer of toxic assets to the bad bank, called FMS Wertmanagement, will take place in the second half of 2010, SoFFin said. The bank will be managed by a six-strong team.
Hypo RE ran into liquidity problems in 2008 due to the credit crisis and received more than EUR 100 bn in government support before it was nationalised.
