The bank is estimated to need up to $14.2 billion to be financially viable again.
In early June, Hypo investors agrees to nationalize the company in order to receive a $4.3 billion capital infusion. Before the shareholder vote the German government held a 47% share in the company. It now has a 90% stake.
The move to turn the company into a state-run entity came after Hypo received $135.5 billion in guarantees from the German government and Hypo still continued to flounder.
Trouble seemed eminent after Hypo's Q1 numbers showed a pre-tax loss of $540.5 million. As reported by GlobeSt.com in early May, Hypo Real Estate's total portfolio declined from $558.7 billion of assets at year-end 2008 to $547.3 billion at the end of Q1. This set the stage for the government-led takeover, which had been rumored since January.
According to a report on MarketWatch Hypo stock is down 97% from its peak. To read the report click here.
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