Print Edition - 2017-03-21  |  Money Digest

Bankers face trial over HRE Scandal


Mar 21, 2017-

Two former executives of the bank that was Germany’s biggest casualty of the 2008-2009 financial crisis went on trial on Monday for their alleged role in the institution’s troubles. Georg Funke, the former chief executive of Hypo Real Estate (HRE), and former chief financial officer Markus Fell were in the dock of the regional court in the southern city of Munich accused of covering up the bank’s woes at the height of the crisis. Funke was sacked from the later nationalised HRE in late 2008. He and Fell, who is also accused of stock price manipulation, face up to three years in prison as well as fines. Both deny the charges. HRE got into trouble after the failure of US investment bank Lehman Brothers in September 2008 exacerbated cash-flow problems at HRE’s Irish unit Depfa Bank. 

Published: 21-03-2017 10:44

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