Eurohypo

Hypothekenbank Frankfurt AG, previously Eurohypo AG, is a European real estate bank based in Eschborn, Frankfurt. Eurohypo is 100% owned by Commerzbank. It is the eleventh-largest bank in Germany with a balance sheet of € 214.2 billion in 2007.

Hypothekenbank Frankfurt AG (previously Eurohypo AG) is a leading international specialist bank for real estate and public finance. The bank is also the Pfandbrief issuer within the Commerzbank Group. Eurohypo’s business model is based on a common platform of real estate and public finance. Bloomberg News termed Eurohypo "problematic" and that it might be transferred to a "bad bank" within Germany's bank rescue fund SoFFin in an effort to help repair Commerzbank's capital deficit.

The Real Estate division of the company includes commercial real estate financing in Germany as well as numerous countries in Europe, the USA and Asia.

The Public Finance division covers

The business division Treasury is in particular responsible for:

Commercial Real Estate Lending through the credit crisis. Eurohypo has had a mixed performance during the recession, as shown in its 2010 results published on 24 February 2011.

Eurohypo was formed in 2003 as a subsidiary of Deutsche Bank, Dresdner Bank and Commerzbank, which agreed with each other to combine all of their real estate lending operations globally into a new bank. It was formed after all three German banks suffering years of writedowns on their real estate lending books, and having to hold greater amounts of regulatory capital against such exposures. By combining their three exposures, Eurohypo became an off-balance sheet subsidiary for all three banks, as no one shareholder had a dominant stake. It also created a bank with greater headcount and administrative overhead than any of its competitors, with none of its three main shareholders directly responsible for its strategic direction. The original intention was for Eurohypo to be listed as an independent bank on the Deutsche Boerse. In the summer of 2005, with equity markets buoyant and Dresdner Bank and Deutsche Bank keen to float Eurohypo, Commerzbank was concerned about the proposed flotation. Commerzbank's own revenues, which were largely linked to the German mid-cap corporate sector, had not recovered at the rate of the rest of the German economy, and more than 40% of its earnings came from its stake in Eurohypo. If Eurohypo would become an independent bank, Commerzbank would become a relatively easy takeover target.

...
Wikipedia