Shares in Hypo Real Estate rebounded today after the European Commission and a group of German banks agreed on a €35 billion ($48 billion) financial rescue package.
By 3pm [Central European Time], Hypo shares in Frankfurt had risen 42 percent to €7.54, though still only half their value prior to Monday’s shock announcement that it required funding to help its infrastructure and public lending subsidiary DEPFA.
The rise followed negotiations at the Bundesbank yesterday when a group of German financial institutions agreed to the bailout plan, according to Bloomberg.
Also yesterday, the European Commission approved the scheme. The European Central Bank and the Bundesbank are contributing €20 billion, said Bloomberg, leaving the unnamed German institutions to step in with €15 billion.