Düsseldorfer Hypothekenbank

The Düsseldorfer Hypothekenbank AG, also known as DüssHyp, was a mortgage bank based in Düsseldorf that specializes in government and real estate financing.[2] (Until the mortgage bank law was abrogated, this term referred to a private law credit institution granting long-term loans secured by mortgages and loans to public authorities.) Refinancing takes place through issuing bonds via the capital market.[3]

The bank specializes in commercial real estate financing. It only engages in direct business to a limited extent; the focus is on syndicate business.

History

The institute was founded by the entrepreneur de:Wolfgang Schuppli. As a consequence of the 2008 financial crisis, it was necessary for the deposit guarantee fund (de:Einlagensicherungsfonds) of the Federal Association of German Banks (BdB) to take over the shares in 2008. It sold them in 2010 to LSF5 German Investments II, L.P. in Delaware, USA (94%) and to LSF5 Riverside Ltd. & Co KG in Frankfurt, Germany (6%)[4] companies belonging to the Lone Star Group.[5] This group was also a shareholder of the Corealcredit Bank. Schuppli later sued the BdB and other defendants for approx. € 500 million in damages because the sale came only through threat and coercion.[6] The charge was dismissed in the first instance. The balance sheet total decreased to € 11 billion as of 30 June 2013 compared to the end of the previous year.[7] The accumulated loss amounted to € 516.4 million in mid-2013; This result was essentially based on the loss carryforward, thus largely coming from the result of earlier financial years. In December 2013, with the maturity of a bond issued by the Düsseldorfer Hypothekenbank of 1.1 billion, the last remaining liquidity guarantee of the SoFFin was repaid.[8]

The Lone Star Group - allegedly - sold their shares to the MainFirst founder Patrick Bettscheider and the British investment company Attestor Capital.[9] However, it became known in March 2015 that the Düsseldorfer Hypothekenbank once again faced bank failure in the wake of the Hypo Alpe Adria crisis, implying that the ownership status was unclear.[10]

On 15 March 2015, the Federal Association of German Banks announced that the private-sector deposit guarantee fund provided a guarantee for the so-called Heta bonds in order to eliminate the acute risks. The aim is to take over the bank through the Deposit Guarantee Fund.[11] According to its 2017 Annual Report, an investment company of the Deposit Guarantee Fund is the sole shareholder.[12]

The Bank is a member of the Association of German Banks (de: Bundesverband deutscher Banken )and the Verband deutscher Pfandbriefbanken'.[13]

Key figures

See also

• List of banks in Germany

External links

• Official Website