Deals
Hypo Real Estate Said to Fail Europe-Wide Stress Test
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Hypo Real Estate Holding AG, the commercial-property lender rescued by the German government following the financial crisis, failed a Europe-wide banking stress test, two people familiar with the results said.
The state-owned bank didn’t pass a stress scenario on its capital that assumes an economic slowdown and sovereign-debt losses, said the people, who declined to be identified before an announcement on July 23. Hypo Real Estate, based in Munich, is probably the only German bank to fail the test, one person said.