Eurohypo's Troubled Past and Commerzbank's Involvement

Eurohypo was a German mortgage bank that was heavily involved in the subprime mortgage market, writing off billions of euros in bad loans.

The bank's troubles began in the early 2000s, when it started to aggressively expand its mortgage business, which ultimately led to a significant increase in non-performing loans.

Commerzbank, another German bank, had a significant stake in Eurohypo and was also heavily exposed to the bank's troubled assets.

In 2008, Commerzbank took over Eurohypo's mortgage business, absorbing €50 billion in bad loans in the process.

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Eurohypo was a German bank that operated from 1993 to 2008. It was a subsidiary of HypoVereinsbank.

Eurohypo's primary business was providing mortgage financing to European banks. This was a significant part of their operations.

The bank was headquartered in Munich, Germany. This is where their main decision-making took place.

Eurohypo's collapse was a result of the global financial crisis. This had a major impact on the bank's financial stability.

In 2008, Eurohypo was sold to BayernLB. This marked the end of the bank's independent operation.

In 2008, Eurohypo found itself at the center of a major financial crisis, now known as the Eurohypo Crisis.

This crisis was triggered by the bank's massive exposure to the US subprime mortgage market, which was heavily reliant on toxic assets.

Eurohypo had invested heavily in these assets, and when the market collapsed, the bank was left with huge losses.

The bank's assets peaked at €142 billion in 2007, but by 2008, they had plummeted to just €34 billion.

The collapse of the bank was a major contributor to the global financial crisis of 2008.

In the end, the bank was forced to merge with Commerzbank, a German bank, to stay afloat.

The crisis led to a significant loss of jobs and a major hit to the German economy.

The Eurohypo Crisis served as a stark reminder of the dangers of reckless financial speculation and the importance of robust regulation.

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Commerzbank is set to take control of Eurohypo, the country's top mortgage lender, in a deal estimated at more than 4 billion euros.

Commerzbank already owns 31.8 per cent of Eurohypo and plans to acquire the stakes of Deutsche Bank and Allianz, giving it more than 98 per cent of Eurohypo.

The deal is valued at nearly 9 billion euros at current market prices.

Commerzbank will have to pump shareholders for fresh capital and sell some of its industrial stakes to help finance the takeover, which may hurt its stock price.

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Thomas Köntgen is taking over as Chairman of the Board of Managing Directors at Eurohypo from Frank Pörschke. He starts this new role on September 1, 2011.

Dr. Frank Pörschke has left Eurohypo by mutual agreement. This decision comes after he successfully led the bank's restructuring in a difficult market environment.

Jochen Klösges, Chairman of the Eurohypo Supervisory Board, thanks Dr. Pörschke for his dedication and commitment. He wishes Dr. Pörschke success in his future endeavors.

The European Commission has set a deadline for Eurohypo to be sold by the end of 2014. Against this backdrop, Thomas Köntgen's experience in credit risk management and real estate markets will be crucial.

Thomas Köntgen has over 15 years of experience in real estate finance, both on the sales side and in risk management. He has worked at Eurohypo since its founding in 2002.

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Commerzbank is taking control of Eurohypo, Germany's top mortgage lender, in a deal estimated at over 4 billion euros.

This move will make Commerzbank the second-largest listed bank in Germany. Commerzbank is paying less than 20 euros a share for the roughly 250 million shares now held by Allianz and Deutsche Bank.

The purchase is expected to boost Commerzbank's earnings stability and position it as a leading independent commercial bank in Germany. Commerzbank already owns 31.8 per cent of Eurohypo.

The deal will give Commerzbank over 98 per cent of Eurohypo, making it the biggest domestic bank merger in Germany since Allianz bought Dresdner Bank in 2001. The lender is valued at nearly 9 billion euros at current market prices.

Commerzbank plans to finance the takeover by selling its stake in Italy's Banca Intesa for about 800 million euros. This move may also prompt the sale of other industrial stakes, such as its roughly 10 per cent stake in Linde.

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