Consequences of the financial crisis
Well shrunk: Bad Bank FMS is making progress
The institute, which the legacy of the Hypo Real Estate reduces from the financial market crisis, now wants to make significant cuts in the staff.
The Munich Bad Bank FMS, who is commissioned by the Hypo Real Estate (HRE) scandal bank, wants to reduce 40 percent of its staff from around 300 employees. The step, which is to be carried out by 2027, is a result of the shrink course of the FMS and is intended to save costs if the portfolio of the bank and interest income – as planned – decrease. The reduction of this portfolio is the central order of Bad Bank and went well last year: it shrank by 3.6 billion to 40.8 billion euros. Without currency effects, it would have been 4.8 billion.
The bottom line was that the FMS made an annual surplus for the 13th time in a row, but at 17 million he more than halved in the previous year. Among other things, this contributed to the fact that the reserves in risk provision were increased, as board spokesman Christoph Müller said. In contrast, interest income had risen five percent to 554 million euros last year despite portfolio mining. The FMS benefited from the increased interest rates.
In October 2010, the FMS took over risk value papers worth almost 176 billion euros from the HRE. Over three quarters of them have now been broken down, partly through sales, some papers have simply reached the end of their term.
The order of the FMS is the self -resolution, but this may take longer than originally planned. After all, the most durable papers in the portfolio are now enough until 2067.
dpa
Source: Stern
