FRANKFURT, March 23 Austria named veteran German
banker and restructuring expert Herbert Walter as chairman of
bailed-out state bank Hypo Alpe Adria.
Walter, a former head of Dresdner Bank, replaces Klaus
Liebscher, who resigned last month after disagreements with the
government over how to deal with Hypo.
Austria nationalised the bank in 2009 when it was on the
verge of collapse after a decade of breakneck expansion at home
and in the Balkans, fuelled by debt guarantees from its home
province of Carinthia.
The Austrian finance ministry said in a statement that
Walter will take over after the publication of the bank's 2013
results, which is due some time next month according to the
Walter was chief executive at Dresdner Bank from 2003 to
2009, before insurer Allianz sold the bank to
Hypo asked the government on Friday for another 1.43 billion
euros ($2 billion) in emergency funds to cover its capital needs
through September. Earlier this month, it had signalled the need
for an unspecified amount to cope with writedowns until it
transfers billions of euros worth of assets to a "bad bank"
later this year. Hypo has already received 4.8 billion euros
($6.62 billion) in state aid since 2008.
Austria put an end to uncertainty over Hypo's future earlier
this month when it ruled out the possibility of letting it go
bust. Instead, the government will wind down the bank via a bad
bank that will take on 18 billion euros of Hypo assets, but it
will take months until the wind-down facility is set up.
($1 = 0.7256 Euros)
(Reporting by Ludwig Burger and Michael Shields. Editing by