Two executives resign from Hypo RE Group

Hypo Real Estate announced late on Monday that the CEO of its infrastructure lending unit Depfa, and a second board member, are resigning from the Group. The news came hours after it emerged that Munich-based Hypo Real Estate had avoided becoming the latest causality of the global financial crisis thanks to a EUR 35 bn credit facility from a consortium of the German government and Germany's financial sector.

Hypo Real Estate said that Paul Leatherdale, CEO of Dublin-based Depfa, is leaving the Hypo Group with immediate effect. Leatherdale had been at the helm of Depfa for just under a year and also had responsibility for Public Sector Origination and Infrastructure Finance. Hypo Real Estate acquired Depfa in October 2007.

Bo Heide-Ottosen, a member of the boards of both Hypo Real Estate Holding and Depfa, has also resigned from all his positions with immediate effect. Heide-Ottosen was responsible for Long-Term Funding and Treasury within Depfa. He was also responsible for Public Sector Finance and Infrastructure Finance within the Hypo Group. Markus Fell, CFO of the Group, will take over responsibility from Bo Heide-Ottosen for Public Sector Finance.

In a third resignation, Robert Grassinger, spokesman for Hypo Real Estate Bank in Munich, is leaving by year-end. 'By mutual consent, the supervisory board had already agreed to terminate Dr. Grassinger's contract some time back,' Hypo Real Estate said in the statement.

'The Management Board of Hypo Real Estate Holding will be enlarged and strengthened in the near future by new board members,' the German lender said.

Click on the link below to read: Hypo RE avoids collapse with last-minute EUR 35b credit facility