Hypo Real Estate boss Funke resigns

Hypo Real Estate boss Funke resigns
Photo: DPA
The head of the troubled German mortgage lender Hypo Real Estate, Georg Funke, has resigned, the fourth biggest German bank said in a statement.

Funke’s future had been thrown in doubt when his bank needed a €50-billion ($68-billion) bail out and German Chancellor Angela Merkel said: “those who managed their company in an irresponsible way will have to answer for it.”

“We owe that to the taxpayers in Germany,” she said.

The German government, the Bundesbank central bank and market regulators agreed with the private banking sector to a new rescue package for stricken Hypo Real Estate, on Sunday evening.

On top of a public-private deal last month to extend a €35-billion credit line to the bank, the financial sector will offer an additional €15 billion, the Finance Ministry said.