Hypo Real Estate Group Posts 3.1 Billion Euro 3Q Loss

Troubled German lender Hypo Real Estate reported Monday a net loss of 3.1 billion euros ($4 billion) in the third quarter as the financial crisis worsened, with a unit in Ireland hit especially hard by write-downs on the values of its assets, the Associated Press reported. The Munich-based bank, which got a 50 billion euro ($63 billion) bailout from the government last month, said it wrote down 2.5 billion euros ($3.1 billion) in the third quarter and that it foresees "further negative impacts on earnings in the fourth quarter of 2008 and in 2009." "A restructuring and reorganization resulting from this will demand difficult decisions from all parties involved in the Hypo Real Estate Group," said chief executive Axel Wieandt. He said the company will need help from the wider German financial industry, the central bank, the government and the Financial Markets Stabilization Fund, which offers the bailout money. Read more.