Hypo Real fights for life after rescue collapses | WHAT REALLY HAPPENED


Hypo Real fights for life after rescue collapses

Property lender Hypo Real Estate (HRE) (HRXG.DE: Quote, Profile, Research, Stock Buzz) fought for its life on Saturday after German banks and insurers pulled out of a state-led 35 billion euro ($48.5 billion) rescue program stitched together only days ago.

The news is a fresh blow for the global financial system struggling to master an unprecedented crisis of confidence and poses a political challenge for the Berlin government, which has been fighting efforts to arrange a pan-European bank bailout.

"The 35 billion euro rescue package promised to the Hypo Real Estate Group and extending into 2009 announced last week is currently withdrawn," the Munich-based real estate and public-sector lender said in a brief statement.

"The intended rescue package involved a liquidity line to be provided by a consortium of several financial institutions. The consortium has now declined to provide the line."

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