Hypo Real Estate Fails Stress Test -Report

Hypo Real Estate, the German bank nationalized during the financial crisis, is set to fail a European stress test, the <I>Financial Times </I >reports.
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MUNICH (

TheStreet

) --

Hypo Real Estate

, the German bank nationalized during the financial crisis, is set to fail a European stress test, the

Financial Times

reports.

The failure could see the German government put more capital into the property lender, which almost failed in 2008.

Sources told the

Financial Times

that Hypo Real Estate may fail part of the stress tests, in which 91 of Europe's leading banks are undergoing. Hypo Real Estate is one of the biggest holders of debt issued by some countries linked to the economic crisis, such as Greece, Portugal and Spain, the

Financial Times

says.

The Committee of European Banking Supervisors is expected on Friday to reveals the results of the stress tests.

Hypo Real Estate is entirely owned by the German government. It has been given about €7.8 billion ($10 billion) of state capital and sources familiar with the bank told the

Financial Times

it may need about €10 billion in total.

-- Reported by Joseph Woelfel in New York.

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