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MUNICH-Hypo Real Estate Holding, the struggling Germany-based lender, will likely need to ask the government for even more money to bail it out. According to reports, the company’s chairman Michael Endres said additional government funding would be needed.

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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