VIENNA (Reuters) – Austrian lenders are paying the price for a decision by the local financial watchdog to seize “bad bank” Heta and freeze its debt repayments, the head of the Austrian arm of Germany’s Deutsche Bank told Reuters.
Austria’s FMA supervisor last month took control of Heta Asset Resolution [HAABI.UL] after a capital hole emerged at the vehicle which is winding down the rest of defunct lender Hypo Alpe Adria.
VIENNA (Reuters) – Austria’s probe into collapsed lender Hypo Alpe Adria began on Wednesday in a welter of wrangling over how much of the investigation into the country’s worst post-war financial scandal should be made public.
Several high-profile figures are expected to testify, but the exact list of witnesses is secret. An opposition party has named 200 people it wants to question, including current and former government officials in Austria and Bavaria, market watchdogs, and senior central bankers.
VIENNA (Reuters) – The European Central Bank has asked euro zone lenders to detail their exposure to Austria and provisions they plan to make after the country halted debt repayments by a “bad bank” winding down defunct lender Hypo Alpe Adria, financial sources told Reuters.
The questionnaire sent to banks and a video conference to discuss the potential fallout underscore the sensitivity of Austria’s path-breaking move to invoke new European rules on ensuring creditors, not just taxpayers, fund bailouts.
VIENNA, March 25 (Reuters) – Raiffeisen Bank International
(RBI) warned on Wednesday it may post a second
straight year of losses in 2015 as it books restructuring costs
for a major retrenchment after decades of expansion in central
and eastern Europe.
Emerging Europe’s second-biggest lender, which announced
details of its drastic restructuring last month, had said last
year it expected earnings in a range of around 500 million euros
VIENNA, March 23 (Reuters) – Austrian property group
Immofinanz AG plans to offer 18.50 euros per share for
a stake of up to 29 percent in CA Immobilien, turning
the tables on its rival, which is seeking to increase its stake
CA Immo dismissed the 531 million-euro ($575 million) offer
as “emotional” and said it would press ahead with its bid to buy
more shares in Immofinanz.
VIENNA/FRANKFURT, March 18 (Reuters) – U.S. investor
Cerberus Capital Management has hired three banks to
help conduct a strategic review of its majority stake in
Austrian lender BAWAG PSK in a deal that could top 4
billion euros ($4.2 billion), sources close to the process told
The sources said Cerberus had hired Goldman Sachs,
Lazard and Morgan Stanley for the review, which
one source said could lead to acquiring another lender, merging
BAWAG with another bank or selling it.
VIENNA, March 5 (Reuters) – U.S. investor Cerberus Capital
Management will play an active role in European banking
consolidation, it said on Thursday, sending the strongest signal
yet it could soon exit its majority stake in Austrian lender
“In general our philosophy is we are a long-term investor
but, that being said, we are consistently evaluating strategic
alternatives. Certainly as there is European banking
consolidation we see ourselves as a big part of that, Cerberus
in general,” Cerberus executive and BAWAG deputy chairman Keith
Tietjen told Reuters.
VIENNA, March 3 (Reuters) – Among the “bad banks” that have
emerged since the global crisis, Austria’s Heta Asset Resolution
stands out as a spectacular failure, brought down by setbacks
ranging from the demands of accounting rules to ailing Balkan
economies and a Swiss decision to let the franc surge.
Questions are swirling over how things could have gone so
wrong so quickly at Heta, carved out just last year
from the lender Hypo Alpe Adria whose demise has already caused
Austria’s worst post-war financial scandal.
* Watchdog says investors can pay for bad bank in variety of
* Bank bond yields rise as bad bank’s senior bondholders at
* Bad bank faced heavy debt redemptions this week
(Adds market reaction, investor comment, detail, changes
dateline from Vienna)
By Michael Shields and Helene Durand
VIENNA/LONDON, March 2 (Reuters/IFR) – Austria has warned
creditors of defunct lender Hypo Alpe Adria they face losses and
could even see the “bad bank” housing their debts put into
insolvency, after the state refused to plug a 7.6 billion euros
($8.5 billion) capital hole.
Austria’s financial watchdog stepped in on Sunday to take
control of bad bank Heta Asset Resolution and halted
payments on more than 11 billion euros worth of debt after an
audit showed its balance sheet was overvalued.
VIENNA, Feb 27 (Reuters) – Erste Group Bank is set
to put its problems in central and eastern Europe behind it
after tackling trouble spots Hungary and Romania, emerging
Europe’s third-biggest lender said on Friday.
The Austrian group, whose shares were up 1.8 percent in
early trade, forecast 2015 operating profit would fall short of
the 3.09 billion euros ($3.5 billion) it announced for 2014, but
its CEO Andreas Treichl was upbeat on the mid-term outlook.