Hypo Group Alpe Adria

Management

Alexander Picker

Hypo Alpe Adria is a banking group in the Austrian state of Carinthia, which has emerged from the state mortgage institution founded in 1896 Carinthia. The Group currently operates with 320 branches primarily in seven countries ( Austria, Italy, Slovenia, Croatia, Serbia and Montenegro, Bosnia and Herzegovina) and is measured by the total sum of the sixth largest money house of Austria. Group's parent company, Hypo Alpe- Adria-Bank International AG.

After the bank was sold by Carinthia at BayernLB in 2007, it came after extensive expansion within two years of massive financial difficulties: After the bank in 2009 no longer had the necessary for balancing equity and bankruptcy danger existed, took over in December 2009, the Republic of Austria 100 % of the shares and thus became in the course of a Notverstaatlichungsverfahrens sole owner. Thus, the Hypo Alpe Adria was at this time according to municipal finance Kommunalkredit the second Austrian bank, which was nationalized since the financial crisis began in 2007.

The bank is suspected to have been instrumental since 1999 in numerous financial and corruption scandals in Austria and Croatia. In Germany, Austria and Croatia, the judicial authorities have launched investigations against employees and business partners of the bank. To own special police SOKO Hypo was founded in Austria dealing with the past, whose work was supported by the Ministry of Finance set up a CSI Hypo. The CSI was dissolved in 2012, the investigation will be continued by the bank's internal forensics department. To date (May 2013) were reimbursed 74 findings of fact to the prosecutor in Austria alone; cited the loss amount is at least 670 million euros. In addition, there have been three committees around the clarification of political responsibility - one in Munich ( Bavaria ), two in Klagenfurt ( Carinthia ). Parallel to the work-up criminal charges employs the EU Commission, the government's bailout. According to requirements from Brussels, the bank must be sold and settled quickly. About the schedule, there are different views.

• 2.1 The Management

• 4.1 accounting fraud in the wake of speculation losses
• 4.2 Speculative losses
• 4.3 shares Spam affair of the Liechtenstein subsidiary
• 4.4 suspicion of insider dealing in the sale of BayernLB 4.4.1 members of the investor group

• 4.7.1 Styrian Spirit
• 4.7.2 Project Skiper
• 4.7.3 The Consultants affair

• 5.1 CSI Hypo
• 5.2 The Small - report
• 5.3 dispute with Bavaria
• 5.4 reorganization
• 5.5 Sales processes 5.5.1 subsidiary banks
• 5.5.2 property deals
• 5.5.3 ghost ships

• 6.1 Time pressure on Austria
• 6.2 Legal dispute over warranty

History

Beginnings of the Carinthian State Mortgage Institution

The bank was founded in 1896 by the State of Carinthia as State Mortgage Institution. At that time - in some cases even later - was in every Austrian province of a State Mortgage Institution. The main task was the financing of public institutions, the residential construction business and the issue of mortgage bonds and municipal bonds. In 1920, the savings deposit business was taken. 1924, the State Mortgage Institution, a public- sector bank and in 1928 took over the Province of Carinthia full liability for the institution. From 1929, she was the sole paying agency of the country.

Second Republic, conversion to a group of companies

In 1962, the new business office was based in the Domgasse and from 1970 branches were gradually built in larger Carinthian places. In 1980 it was renamed the Carinthian regional mortgage bank, and the bank was founded in 1982 to universal bank. 1988, the Bank with a leasing company in Udine the first international expansion step. Converted into a corporation in 1991, the Hypo -Alpe -Adria -Bank International AG and a holding club on base, created the Carinthian provincial and mortgage bank holding company ( the Carinthian State Holding). 1992 participated alongside the State of Carinthia Graz Mutual insurance with a share of 48 % as the second shareholder. At this time, Wolfgang Kulterer came to the board of the bank. The balance sheet total was in 1992 at 1.87 billion euros. Kulterer drove the expansion, together with his fellow board members Jörg Schuster persistently above. After the collapse of Yugoslavia, he soon put to the successor states, 1995, the Bank in Hypo Alpe- Adria-Bank AG ( HAAB ) was converted in 1999, this modern new Hypo -Alpe -Adria - center was opened in Klagenfurt am Alpe- Adria-Platz. Backed by guarantees of the federal state of Carinthia, the total assets in 2005 amounted to 24.23 billion euros.

Hypo Alpe Adria since 2006

In 2006 the company name of the group in Hypo Group Alpe Adria (HGAA ) was changed. It was a new logo designed to illustrate the international nature of the former Landesbank. It shows above the silver-gray Alps, below the deep blue Adriatic Sea.

From 2 October 2006, the Bank was led by Siegfried Grigg. The Vice Chief of GraWe took over from Wolfgang Kulterer, who resigned after the turmoil around speculative losses of the bank. Kulterer was Chairman of the Board. Grigg was previously worked for 25 years at the Hypo - GraWe co-owner, he was further six years Hypo - Supervisory Board and Member of the Credit Committee.

On 15 December 2006, involved the investor group led by the Luxembourg Berlin & Co. Capital Sarl, under the leadership of 49 - year-old German asset manager Tilo Berlin with 4.76% in Hypo Group Alpe Adria. This was part of the first tranche of a capital increase ( 125 million euros ). The money came probably for the most part by wealthy Austrian and German families. On March 1, 2007, the second tranche of the capital ( 250 million euros ) has been completed. The new ownership structure were thus as follows: Carinthian State Holding 44.91 %, 41.45 % Grazer, Berlin & Co. 9.09% and the in-house employee fund 4.55%.

On 17 May 2007, announced that BayernLB would take over a majority stake in Hypo Group Alpe Adria. The sale of 50 % plus one share was contractually early as May 22, 2007. BayernLB paid for 1.6 billion euros. The Carinthian State Holding sold almost 25% and still retained 20 % and got 800 million euros. Thus, the country has repaid the convertible bond due in 2008 of 550 million euros. The employee foundation was still 3% and the Grazer insurance separated from 15 %, you remained 26%. Hypo - chief Berlin sold its entire stake to 1%. As of 1 June 2007 on Berlin took over the chairmanship to the Hypo Group Alpe Adria. The previous CEO Grigg returned to the Grazer. Upon completion of the capital increase in 2008, BayernLB held 67.08 %, the Grazer 20.48 %, the KLH-Gruppe/Kärntner national holding 12.42% and Hypo Alpe -Adria - staff foundation 0.02%.

In December 2008, after the financial crisis had come to full fruition from 2007, the Ministry of Finance said that the Hypo Group Alpe Adria is to receive 900 million euros of participation capital from the banking bailout of the Republic of Austria. The core capital ratio of Hypo rose as the end of 2008 to 8.4%. Hypo should pay for it in profitable years 8% annual dividend and comply with some requirements. As of end of April 2009 CEO Tilo Berlin has resigned after differences with the hypo- majority owner BayernLB. His successor as of 1 June 2009, the former Director-General Franz ÖVAG Pinkl was ordered. In mid-November, 2009, the Bank announced that it within a year a strong infusion of capital from outside need for the second time, so it does not fall due to the required high write-downs for impaired loans in South Eastern Europe under the prescribed minimum capital limit of 8 %. It was of a capital requirement of at least 1.5 billion euros of the question.

The government's bailout

On 14 December 2009, it came after a night marathon session - "The Night of Long Knives " - between the Republic of Austria under Finance Minister Josef Pröll and BayernLB under the Bavarian Finance Minister Georg driving Already, the Province of Carinthia under Governor Gerhard Dörfler and Grazer Wechselseitige insurance to the following agreement: the bank was taken over to the symbolic price of four euros to 100 % of the Republic of Austria. A prerequisite was that BayernLB bring 825 million, 180 million Carinthia and the Grazer 30 million euros in the bank. The Republic of Austria had zuzuschießen up to 450 million euros over the 15 - billion-euro bank rescue package.

After the completion of the following emergency meeting of the Cabinet of the Minister President of Bavaria Horst Seehofer had the CEO of BayernLB, Michael Kemmer, resign with immediate effect. The European Commission approved on 23 December 2009, the nationalization of HGAA by Austria. At the same time it was announced that the bank had to submit a comprehensive restructuring plan by the end of March 2010, the EU. On 8 January 2011, the Austrian news magazine published the profile undisclosed share purchase agreement between the Republic of Austria, Bayerische Landesbank and Hypo Alpe Adria to rescue the bank. Accordingly, the Bayerische Landesbank had his own daughter driven from November 2009 specifically to the brink of bankruptcy and can still secure the Austrian taxpayer investments in the billions. Indeed, the Republic in the disputed contract extensive rights of control over the future participation of the company confessed to Bayern and waives a usual improvement clause. In addition, despite the precarious situation of the repayment of loans in the Bavarian extent of 3.1 billion euros was guaranteed, Austria should be " its majority stake in the bank to sell or divide the bank ," - perhaps in a bad bank and separate a good bank. The EU sees these guarantees as unauthorized aid; Therefore since the fall of 2012, a dispute between the federal government and the EU in progress. Austria was badly negotiated, critics agree. The figures illustrate: During the BayernLB had to contribute only 825 million euros for the rehabilitation of Hypo, brought Austria to the already paid state aid of 900 million euros still 1,150 million euros to save the bank from insolvency. A further 700 million euros in 2013 could flow; additionally had to pay 180 million the Province of Carinthia.

Nevertheless, the government's bailout has been defended as " alternative", such as the former Minister of Finance Josef Pröll at his hearing in Carinthia's committee of inquiry - the political implications of the Hypo sale 2007 - emphasized on June 15, 2011: A Hypo - bankruptcy would be like " Lehman 2 " was; about being " stood with his back to the wall " in late 2009. Blame billion were guarantees of Carinthia for Hypo primarily the " unimaginable ". Also in charge of contract negotiations lawyer and president of the State Financial, Wolfgang Peschorn, defended as a witness the government's bailout: You have not to be taken to the cleaners and has sought to exhaust all legal options against Bayern.

A year later Peschorn finally gave in 2012 in the German magazine Spiegel that the Republic had been deceived by the Bavarian previous owners on many points: "It is as if we had a car with the note, get No major problems ' and found afterwards that the whole chassis is rusty. " no one wanted to be responsible for the billion debacle yet. Ex - Finance Minister Pröll remembered rely at all only vaguely to the government's bailout, he had to experts in civil proceedings in April 2013, the Vienna Commercial Court. These are, as witnesses, Peschorn and Alfred Lejsek been the Ministry of Finance. The Klagenfurt prosecutor has meanwhile initiated on the basis of View the Members of Parliament Stefan Petzner against twelve people involved in the negotiations nationalization investigation on suspicion of embezzlement, accounting fraud and abuse of office. Among other things, ex-Minister Pröll, ex- bank chief Franz Pinkl and Finanzprokuraturpräsident Peschorn were named as suspects, against Peschorn an ad for an alleged false testimony before the Carinthian investigation committee was refunded.

A new Supervisory Board was appointed in January 2010. Johannes Ditz was elected as Deputy Chairman and Chairman Rudolf Scholten, other members are Helmut Draxler and Alois Steinbichler. In March 2010, the Supervisory Board appointed the new board of the bank. CEO was the former head of KPMG Austria, Gottwald Kranebitter.

On 5 April 2011, the Bank announced that it redeem the named Group as part of a new advertising campaign from the logo.

Organization of Hypo Alpe Adria

(all data according to the official version )

Hypo Alpe -Adria -Bank International and Hypo Alpe- Adria-Bank Austria are members of the Association of Austrian state mortgage banks.

The management

A new Supervisory Board was appointed in January 2010. Johannes Ditz was elected as Deputy Chairman and Chairman Rudolf Scholten, other members are Helmut Draxler and Alois Steinbichler. In April 2013, announced that the two heads of the Austrian financial market investment company FIMBAG Klaus Liebscher and Alfred Wala be appointed to the Supervisory Board. At the same time, the mandate of Gottwald cranes Bitter was extended as CEO for another three years, as well as the management contracts of Wolfgang Edelmüller, Rainer Backs and Johannes Proksch. Kranebitter, formerly head of the firm of auditors, KPMG, was appointed in March 2010 to the board of the bank. On June 3, 2013 Johannes Ditz resigned as Chairman of Supervisory Board of Hypo Alpe -Adria -Bank International AG with immediate effect because he did not agree with the government approach to the future of the bank according to their own statements. He was followed officially on Friday 21 June 2013, the FIMBAG boss Klaus Liebscher as new chairman after. Gottwald Kranebitter announced on July 2, 2013 announced his retirement and retired after the publication of half-year results 2013 of Hypo Alpe -Adria -Bank International AG on 28 August 2013, the company made ​​. As a reason for the resignation Kranebitter led to several months of public discussion of closure scenarios and undifferentiated costs speculations which had, according to his words, a large part of the renovation work of the last three years severely damaged and badly drawn the economic situation of healthy banking parts affected. On 20 December 2013, the Bank announced that Alexander Picker is used with January 1, 2014 as the new CEO of Hypo Alpe- Adria-Bank International AG. Alexander Picker is considered as a banker with extensive Balkan experience and was, among other many years for UniCredit / Bank Austria in Russia, Poland, Serbia and Kazakhstan worked prior to joining Hypo.

Buildings and sponsorship

Designed by the American architect Thom Mayne headquarters of Hypo Alpe Adria is located in the Carinthian capital Klagenfurt, Alpen- Adria-Platz.

• Hypo Group Arena from 2009 to 2010, the stadium in Klagenfurt, Austria ( now called the Wörthersee Stadium )
• Hypo Group Tennis International from 2006 to 2008 tennis tournament in Poertschach, Austria

Financial affairs of the Hypo Alpe -Adria Bank

Since 2004, reported financial affairs at Hypo Alpe Adria. In June 2007, additional inconsistencies were known, a draft report by the Austrian National Bank. These range from a lack of compliance with due diligence requirements and dubious property sales up to the suspicion of money laundering. The Croatian journalist Hrvoje Appelt, who had first reported about the corruption affairs around the Hypo designated the Bank as "one of the largest criminal organizations in Croatia - with a mighty political background and protection from the highest authority ."

Accounting fraud in the wake of speculation losses

In March 2006, the BAWAG affair suggested in the Austrian public high waves. A little later it was announced that the Hypo Alpe- Adria-Bank had to take into account a significant loss for the bank in the amount of approximately 328 million euros in the balance sheets through risk speculation, which was not timely made ​​in 2004. Also in this case, the Financial Market Authority (FMA ) started investigations. The end of March drew the auditors Deloitte the auditor's report for the 2004 balance back. The FMA refunded in April 2006 complaint against the management of Hypo Alpe- Adria-Bank because of accounting fraud.

In order to avoid impeachment by the FMA, the former CEO Wolfgang Kulterer resigned and moved to the position of chairman of the bank. Since such a change, according to the Corporate Governance Codex would have been possible only after a waiting period of three years, the Supervisory Board of the Carinthian State Holding the relevant clauses allowed by a vote of AAF and ÖVP representatives on 16 August 2006 unceremoniously deleted from the Bank's Articles of Association.

Kulterer was sentenced in November 2008 before the Klagenfurt Regional Court for false accounting to 140,000 euros fine. He defended himself, the false accounting was " economically correct, but legally incorrect ," and pleaded guilty. The case against his fellow board members Günter Striedingers was continued separately. The accused also Thomas Morgl received a diversion.

Speculative losses

On 11 January it was announced that the Hypo miscalculated hundreds of millions euros in the tax haven of Jersey. Accordingly, the Bank had recorded in the years 2001 and 2004, 75 million euros each to speculative capital in the Channel Islands. End of 2005, founded the Carinthian banker with Deutsche Bank about the U.S. tax haven Delaware HB International Credit Management in Jersey. This then funded two subsidiaries named Carinthia I and II latter invested in securities with different credit ratings, which in turn were issued by two special companies of the Deutsche Bank. In the wake of the financial crisis of 2007, HB International Credit Management had to suffer losses amounting to 210 million euros. She was assessed at the time with 842 million euros in toxic assets.

In a second attempt in 2007 was re- equipped with 400 million euros HB International Credit Management by Hypo Bank and German. Due to the ongoing financial crisis, Hypo had to write off 56 million euros in 2008 again. There were also losses from the collapse of Lehman Brothers and Icelandic banks of three, has also invested in their products.

Stock Spam affair Liechtenstein subsidiary

In August 2007, reports The Vancouver Sun that Hypo Alpe Liechtenstein AG until the end of 2007 a ​​wholly owned subsidiary of Hypo Group Alpe Adria, was excluded from the Financial Services Authority of British Columbia temporarily from trading, as these between 1st November 2006 and August 31 acted with spam shares in 2007. The penny stock in question had been touted in spam e- mails for purchase. As Hypo Alpe Liechtenstein AG on demand by the tax authorities - and with reference to banking secrecy in Liechtenstein - did not want to specify on whose behalf she had done with these shares, it was finally on May 20, 2008 " for all time " by the securities and foreign exchange business in British Columbia excluded. According to the Austrian news magazine Profil it was " in civilized parts of the world " probably unique "that a bank of a financial forevermore Securities transactions are prohibited ." Meanwhile HGAA only holds a minority stake of 49% in the Liechtenstein subsidiary.

Suspicion of insider dealing in the sale of BayernLB

On 1 January 2010, the Süddeutsche Zeitung reported that the suspected insider dealing have confirmed the sale of HGAA to the Bavarian Landesbank. According to Berlin group of investors who already knew the purchase of 9.09% stake in HGAA that the bank is taken over a short time later by BayernLB at a higher price. As early as 31 January 2007, it is in the Munich headquarters of BayernLB a secret round of talks have given over the proposed sale, where the bank manager Werner Schmidt and Wolfgang Kulterer, confidant of the late Carinthian governor Jörg Haider, and Tilo Berlin were present. So far Schmidt, Kulterer, Berlin and Haider had claimed as a witness in an examination committee of the Carinthian parliament, they had experienced in Hypo Alpe Adria until March 2007, the interests of BayernLB. In fact, the investor group has its stake in Hypo Alpe Adria after only a short time to resell on 22 May 2007 with high profit of 170 million euros.

Members of the investor group

What investors directly or indirectly to the Project Knox Luxembourg SPV Berlin & Co. Capital Sarl have been involved, it is not known completely. Tilo Berlin said in several interviews that between 30 and 50 investors were involved in the form of bonus shares. According to a hypo- employee, it should be 47, including the private foundation by Ingrid Flick, widow of Friedrich Karl Flick, the Management Board and Managing Director was again Wolfgang Kulterer to 2010. Also Kulterer itself to be among the investors. Some individuals participated indirectly in the deal, for example, concerning the investment company Kingsbridge Capital in Jersey, which is part of the Austrian Hardt Group. Its owner, the Vienna investment banker Alexander Schweickhardt, has already confirmed participation. Also should have been there, according to the Austrian news magazine format of the former Austrian Finance Minister Karl- Heinz Grasser. He is said to have become involved during his tenure with half a million euros indirectly via the Swiss Trust Company AG Ferint without declaring the incompatibility in accordance with law to the President of the Court. Grasser was deny the reports through his lawyer. On March 26, published format a confidential report of the Austrian National Bank ( OeNB ) in which Grassers transactions are tracked in detail. The Financial Market Authority (FMA ), which had given the study in order, then initiated a special investigation. It is checked whether the Ferint AG and Karl -Heinz Grasser have violated the Clause 40 of the Banking Act. In it the " due diligence to combat money laundering and terrorist financing" are committed. It is the presumption of innocence.

On January 14, 2010, the Austrian news magazine published a profile list of 46 investors who had Tilo Berlin itself created and submitted to the State Government of Carinthia. The document said to have been seized in the course of a search warrant that could be conducted in Vienna law firms and at the headquarters of Tilo Berlin, the Munich prosecutor's office in the fall of 2009. Originally the speech due to an erroneous double counting of 47 people.

• From Austria Constantia Privat Bank AG
• Count Clemens Goes's
• Michael Gröller
• Maxim's Private Foundation
• HW Equity Beta GmbH
• Mathias Orsini -Rosenberg
• SE Sports Entertainment Agency
• Veit Sorger
• Miguel Spitzy
• Count Ferdinand Orsini -Rosenberg
• Friedrich Klausner ( will not be involved, according to his lawyers )
• South shore GmbH
• Alexander von Leeb
• Alexander Wardt
• Heinrich Gröller
• Elisabeth Gröller
• John Wendt
• Dr. Wulf Dieter Klaus frisee
• Christoph Tscholl
• FRAPAG
• Marie Maculan

• From Germany Hans Werner Aufrecht
• Kiefer GmbH
• Arndt Klippgen
• Piëch asset management GbR
• Oliver Marc Schwarzkopf
• Alexander Stronger
• Hubert Stronger jun.
• Family Max Stürzer GbR II
• Walter Steyer
• Ingrid Flick
• Anjuta Aigner - Dünnwald
• Patrick Nathe
• CMB controlling and management consulting GmbH
• Hr. Nörenberg
• Heinz Dürr GmbH
• Helmut Maucher

• From Switzerland Interswiss Trust AG
• Ferint AG Karl -Heinz Grasser

• From other countries Hardt Group Securities S. A. ( Luxembourg )
• Cheyne Special Situations Fund L.P. ( UK )
• Natasha Nathe (Norway )

In the course of the investigation, two journalists were interrogated by the Austrian public prosecutor's office at the request of prosecutors in Munich, without having a legal basis for this. The two journalists accused of violating the German Penal Code § 353d ( Forbidden notifications of trials ). Since there is no corresponding event in Austria, also a mutual assistance agreement applies. For this reason, the Austrian justice system is accused by the international journalists' organization Reporters Without Borders, an attack on press freedom. The prosecution, which gave error, said a destruction of the protocols.

Suspected hidden party financing

When selling Hypo to BayernLB to be (formerly Carinthian AAF ) flowed to the Carinthian government parties, the Freedom Party in Carinthia and ÖVP several million euros. According to newspaper reports to the Freedom Party in Carinthia have received 27 million euros and 13 million euros, the ÖVP.

Undeniably, the generous loans from the bank to the Freedom Party in Carinthia of 2.6 million euros and the AAF Parliamentary Club of 892,000 euros. The Carinthian SPÖ borrowed at Hypo 1.25 million euros.

Under the then Governor Jörg Haider took over the Province of Carinthia a liability, the amount of which, as later became known, was up to 24.7 billion euros for the bank. This corresponds to about eight times the Carinthian provincial budgets. For this, the country received a liability fee annually. In 2003, about 8.2 million were transferred to the State of Carinthia by Hypo. In sum, cashing in Carinthia in the period 2002-2007 of 48 million euros. The guarantee commission until 2010 Carinthia settled in one fell swoop by the Bank to advance and thus secured a loan from the Hypo in the amount of 58 million euros. 20 million euros of which will be disbursed to the election campaign of the " major parties ", according to the Greens.

End of 2009, not aufscheinende in Carinthia's budget for 2010 stood at € 19 billion liability. In January 2011, says the new head of the Bank, Gottwald cranes Bitter, from a liability in the amount of 20 billion euros, or 36,000 euros per Carinthian for bonds that have to be repaid until 2017.

On July 4, 2012 began on the Klagenfurt Regional Court a criminal case against Martinz and the accountant Dietrich Birnbacher on suspicion of infidelity. On July 25, 2012 Birnbacher confessed in court that was agreed to pass parts of his ( as he had already confessed before, greatly exceeding ) fee to the ÖVP Martinz and the former AAF under Jörg Haider (now The Freedom Party in Carinthia, FPK ). Martinz declared on the same day his resignation as ÖVP state party chairman; he announced to resign from the People's Party, and confessed to the Tatvorgang illegal party financing a after he had this formerly frequently denied. Martinz denied that had been ( as claimed by Birnbaumer ) former Interior Minister Ernst Strasser involved.

The announcement of the processes unleashed terror, Federal President Heinz Fischer spoke of a " political swamp ". The federal government was considering a request for dissolution of the Carinthian Landtag. Corruption Prosecutor's Office initiated an investigation against the Provincial Harald Dobernig ( FPK ) and three experts a suspicion of guilt contribution to infidelity. Investigation of the only recently not legally sentenced to a conditional sentence Provincial Scheuch ( FPK ) are checked. The Carinthian Governor Gerhard Dörfler ( FPK ) described the allegations against Martinz, tickler and others as " Menschenhatz " and rejected calls for new elections from. The Kleine Zeitung reported that documents were shredded in the office of Uwe tickler, the message but pulled back, " so as not to interfere in investigations by the authorities ."

On 27 July 2012, a special meeting of Parliament was held. In the course of the debate, there was gross inconsistencies and insults. So the FPK Grebenjak MPs called for a Green Member of Parliament on gestures for airing their T -shirts. In the budget committee a motion for new elections was decided. The FPK threatened to prevent votes on the motion for new elections by constantly taking off from the plenum.

In addition to the complete withdrawal of Josef Martinz from the policy, the investigation led to the resignations of Scheuch ( FPK ), Achill Rumpold, Stephan Michael Tauschitz and Thomas Goritschnig (all ÖVP) from their posts.

On October 1, 2012 Hans -Jörg Megymorez were in the first instance because of infidelity Josef Martinz to five and a half years of unconditional imprisonment, Dietrich Birnbacher limited to three years in prison, including two years, sentenced to three years in prison and Gert Xander to two years imprisonment.

Share carousel in Liechtenstein

On May 24, 2012 There came at the Regional Court Klagenfurt at the first prison sentences in the Hypo - Causa: The two former directors Wolfgang Kulterer and Günter Striedingers and Klagenfurt lawyer Gerhard Kucher and tax advisor Hermann Gabriel were suspected of disloyalty or sentenced contribution perpetrators to long prison sentences - Kulterer sums of 3 ½ years, Striedingers and Kucher, respectively 4, Gabriel 4 ½ years. The decisions are not legally binding. The two financial advisors Kucher and Gabriel is accused of having developed in 2004 a complicated share construct with which they not only themselves could encash financial benefits through a foundation braid in Liechtenstein, but also of the Hypo Bank " classic evading " by one, as a judge consider when verdict described to have not give existing capital. The two board members Kulterer and Striedingers had known of the preferred share deal and so must never allow him as an expert. The Hypo itself is caused by the misappropriation, according to prosecutors, a loss of 5.49 million euros. Surprisingly, the bank was referenced in criminal proceedings with their demands on the civil law - the Commercial Court of Vienna is a lawsuit for damages over 48 million euros pending.

Bad loans

Styrian Spirit

More than ten billion euros is the degradation of the Hypo in 2013 - the majority of it is the fault of bad loans that should have been awarded, especially in Eastern Europe, but also in Austria recklessly and without adequate credit checks or even seizures. Among other things, former Director Wolfgang Kulterer was sentenced in 2013 again for infidelity to 2 ½ years in prison because he had awarded jointly with the former Hypo - Austria - Board Gert Xander and an authorized signatory in 2005 to the airline Styrian Spirit two million euro loan - despite warnings before the ailing financial situation of the company and without collateral. The Styrian Spirit suffered a financial crash landing, Hypo remained at two million euros sit harm. Kulterer had always insisted that he acted only on behalf of the late Governor of Carinthia Joerg Haider man. Haider had with the regional airline business of Carinthia's enliven want - regardless of the economic difficulties of the Styrian Spirit. In the first trial in 2011 Kulterer and his co-defendants were therefore also acquitted by Judge Norbert Jenny; but the Supreme Court ordered a rerun of the proceedings for breach of trust. This ended under Judge Christian Liebhauser with convictions that are opposed by the defendants.

Project Skiper

Günter Striedingers also supposed to have a lasting contribution with a number of dubious lending to financial collapse with Hypo. He was in the bank in 2000 as the mastermind of Croatia, where he was especially large projects such as the hotel complex Skiper Savudrija in Istria, financing of Croatian companies AB Maris and Darija or tourism project Jaklan responsible, which by the investigating authorities on suspicion of criminal activity be examined. Also Striedingers is always associated with the imprisoned Croatian general Vladimir Zagorec. An insider reported that both Striedingers and Kulterer had plowed the best contacts to Croatian customers and funds were often secretly transported in suitcases in Learjets. Also in the castle Freyenthurn in Klagenfurt there should have been a short time a vault for cash transfers. Overall, the Hypo has brought against her former Board Striedingers more than 30 ads.

The consultants affair

2007 sold before the introduction of the so-called Hypo Consultants Bavaria, in the real estate and projects in the financing of 225 million euros were included Hypo. The deal with the Croatian Auctor group was hailed as a success and led to the payment of a special dividend of 50 million euros in 2008 to the former owners province of Carinthia, Grazer and the Berlin group. But the supposed big business turned out to be a flop: For the Auctor or its successor company would have debts of more than 250 million euro, which had to be written by Hypo. 2011, the Bank has introduced a civil action against the beneficiaries of the dividend and ten former bank managers and board members like Wolfgang Kulterer, Siegfried Grigg and Othmar Ederer in the matter. The loans had been awarded negligently; the profits would be faked, so that was the special dividend unlawful.

Work-up and Restructuring

CSI Hypo

After the government's bailout of the end of 2009 was in February 2010, Finance Minister Josef Pröll at a travel in Mumbai in front of Austrian journalists starting your own CSI Hypo known. A 100 - strong team of forensic scientists, economic and legal experts should " turn over every document twice " to find out the causes of the rapid financial collapse and the whereabouts of the money. This task force was called in allusion to the popular TV crime series CSI - a marketing ploy, say critics. The Green spokesman Werner Kogler financial warned that from a CSI easily a " file number Hypo unresolved " could be. As head of the CSI, the President of the State Financial Wolfgang Peschorn was used externally, however, joined the Graz lawyer Guido hero as speaker in appearance. Hero came under fire because he functioned as the legal representative of the Bank, and brought an appeal against investigators activities such as house searches, seizures or account openings. The plan was that the CSI Hypo can still submit 2010 Results.

However, the investigation spiked after a few months, between the CSI -wire and bank chief Gottfried Kranebitter there were repeated clashes. Kranebitter complained publicly that he felt in daily banking operations and the attempt to restructure the company and to make verkaufsfit limited; CSI also publicly insisted on precise investigations without regard to the financial market and the tense situation of Hypo. Results did not exist; for amusement was provided by a newspaper report of a Bosnian prisoner who had offered his services as a spy and hypo- after all, an appointment with an official of the Special Commission received: He offered for corresponding salary in the " hypo- underworld" creep. Also Chairman Johannes Ditz urged due to the breakdown it several times to adjust the activities of CSI.

In May 2012, it finally happened. A so-called external commissioner coordinator was employed in the society the previous CSI - Department Forensics - be reconciled. It involves Georg Krakow, former prosecutor in the BAWAG affair and subsequently Head of Cabinet under Justice Minister Claudia Bandion - Ortner. He and his team to work up more than 1,100 individual cases and prepare a data material of 4.7 million documents with an electronic special software. The obligation of the Bank to terms with its past was found in the memorandum; " Forensics " controls this activity at home and abroad, with a focus on investigative work in Liechtenstein as well as the processing of the topics BayernLB equity, consultants and preferred equities. By the end of 2012 74 findings of fact with a total loss amount of approximately 670 million euros at home and abroad with the competent prosecution office have been introduced. In addition, five civil lawsuits against former makers and third parties with an aggregate amount of approximately 107 million euros are pending in the civil courts in Austria in 2013.

The Little certificate

In August 2011, the Graz court expert and auditor Fritz Kleiner was asked to prepare an opinion on the time of BayernLB from the owner Republic and the Bank. The end of April puts Little, who was also involved in the BAWAG scandal as a court expert, more than 700 pages strong expertise ago, in which he reveals a number of previously unrecognized points. For one, he criticized the work of Tilo Berlin as CEO of the bank, which had been inactive and have conceded completely excessive remuneration. "Bayern wanted the bank at any price have; when they had finally, while mismanagement was operated. And this Little writes about especially a person: Tilo Berlin ", cite media.

A stir was caused Kleiner's assessment as an auditor that BayernLB had planned to phase in the Hypo some time. Shortly before the takeover by the Austrian state clipping off the Germans in 2009 with Hypo credit lines worth hundreds of millions. The end of 2009 the Klagenfurt Institute was saved with the nationalization of bankruptcy. According to Small, the Bavarians had been a year previously decided to separate from the Austria - daughter - as it is on page 566 of the report: "According to statements by Kurt driving Already, the then Prime Minister of Finance, was a medium-term perspective in the Board meeting on 29 November. , 2008 decided to separate from the Hypo and abandon the strategy for Eastern Europe. " state aid the Republic, however, were granted with regard to the Eastern European commitment of the bank and the systemic importance of the group in Eastern Europe. The Austrian National Bank downgraded the Hypo at the time still considered " not distressed, ie immediately required rescue " a.

On the other pointed to the Little - opinion that the current 2014 credit lines of 3.1 billion euros BayernLB not be as still in the nationalization of the contract as a loan to the former subsidiary Hypo, but should be seen as an equity substitute. This had the bank neither the current interest still use it to replace the capital. According to the report flowed from February to October 2008, around 2.9 billion euros - devoid of any purpose use in the loan agreements. Should the money have served the loss coverage, " the BLB have known about it ," citing a newspaper from Kleiner's opinion. Therefore Hypo instructed another expert.

Dispute with Bavaria

BayernLB had in the Hypo Alpe Adria as the owner only a short spell: from 2007 to the government's bailout of 2009 During this time Bayern sunk by its own account 3.7 billion euros of taxpayers' money in the Carinthian bank. . More 3.1 billion euros, as recorded in the nationalization contract, loans that were paid in several installments between March 2008 and June 2009 to the distressed daughter. By December 2012, the Hypo had these controversial loan repayments, including interest, load served - because of the less- opinion, the payments were finally set: Via letter informed the Bank of Munich that Hypo or the Republic of Austria but go out, the new owner of equity that the Bayern mother pumped into the hypo. She explained that had been channeled funds under Section 1 EKEG ( equity substitution law ) an equity character and referred to the fact that the 3.1 billion had been invested in times of crisis. Thus they would not be repaid. BayernLB responded to the stop payment with a suit at the Commercial Court in Munich, in the 2.3 billion plus interest loads are required. " I want my money back", the Bavarian Finance Minister Markus Söder the Austrian Finance Minister Maria Fekter said during a visit to Vienna. The quote is a reference to that sentence, with the former British Prime Minister Margaret Thatcher had negotiated the so-called British rebate in the EU.

Also at another front, the short-term owner BayernLB acts against their former daughter: On Vienna commercial court an action against the staff foundation of Hypo (MAPS ) of the BayernLB had purchased in two tranches shares in 2007 to 117 million euros in progress. BayernLB felt cheated in the deal because you were denied in preference shares, the equity harmful side agreements. The suit was originally introduced to 50 million euros, but then reduced to ten million due to the high litigation risk and the immense costs. It is considered a trial balloon: Would BayernLB successful with their claims against the MAPS, it could be the other sellers - Province of Carinthia, Grawe and Tilo Berlin group of investors - sue for rescission of the business.

Reorganization

As a result of the government's bailout of a new management team was appointed by the new sole owner Republic, which must follow a clear mandate to restructure the Bank Group. The basis for this is, according to bank a "four -pillar strategy " with the aim to restructure the economy Hypo Alpe Adria and to make individual areas fit for the market, thus salable. According to Bank therefore state and federal prone guarantees in the amount of 5 billion euros were reduced from 21 to 16 billion euros since the government's bailout, in the same period the bank to more than 7 billion euros, or nearly one-fifth has shrunk to a total assets of 33 billion euros and then is about the size of 2006. with the sale of the two aluminum processing plants TLM -TVP or Aluflexpack in Croatia, Hypo Alpe Adria 2012 has withdrawn entirely from the industrial sector. For the specific implementation of the restructuring, the strategic pillars of Austria (HBA ), Italy ( HBI ), South Eastern Europe (SEE ) and degradation ( HETA Asset Resolution) were formed. While the pillars Austria, Italy and SEE underwent a fundamental restructuring to restore profitability, cumulative degradation of the column all non- strategic assets that are conducted as planned and maximizing value.

" Heta Asset Resolution" thus includes all no longer privatisierbaren parts of the company such as bad loans, bankruptcy investments and is not currently usable real estate. A reduction will indeed take place " asset-light ", but extends over years. The extent of this " bank - dump " from leasing and participation legacy is at 11.7 billion euros. CEO Gottwald Kranebitter called for this " scrap " part already set up a so-called "bad bank" to rid the operating range of the contaminated sites. The Austrian National Bank rated the overall risk of loss to the owner Republic in a liquidation of Hypo in a strategy paper in April 2013 with up to 16 billion euros.

Sales processes

Subsidiary banks

The EU Commission for an emergency nationalization policies provide for the speedy settlement and asset stripping. In the case of Hypo Austria the daughter is considered profitable. Hypo Bank Austria (HBA ) could generate 2012 for the second year in a row, with total assets of 3.8 billion euros 17 million euro profit. Her book value is 150 million euros. In order to make the company with 14 branches appealing to buyers, was carried out the elimination of non-strategic business portfolio of the HBA in the parent company Hypo Alpe -Adria-Bank International AG in September 2012. This was the " bride dressed " as newspapers report. On May 31, 2013 were announced that the Hypo Bank ( HBA) by 65.5 million euros to the Anadi Financial Holdings Pte. Ltd. of the British citizen has been with Indian roots, Sanjeev Kanoria sold. The 49 -year-old acquired with the bank not only the Austrian branch network, but also a European bank license and the right to issue mortgage bonds. At the signing ceremony particularly strong commitment to the region and the development potential of Hypo in Carinthia was highlighted by the investor. The future commitment of Anadi Financial promise for Hypo in Carinthia the opportunity to offer new products in additional markets and expand its market position and to further consolidate, Kanoria promised in Vienna. The fact that the Bank had to be sold far below book value, according to chairman John Ditz was the fault of the months-long debate about the Hypo. "The bank is spoken broken," he complained. That alone would cost in the sale of Hypo Austria at least 30 million euros.

Even more difficult is the sale of Hypo Italy, where the purchase price is around 350 million euros, and the re-privatization of the Eastern European banking network of the Hypo: indeed was for the SEE network consisting of Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro the Reprivatisierungsprozess started; due to the banking crisis, the daughters are initially as a shop keeper.

Property deals

As part of the restructuring, the bank must divest itself of its extensive real estate portfolio. One of the most spectacular deals relates to the Schloss Velden, which had been purchased still under Wolfgang Kulterer and Jörg Haider in July 2005 by Playboy photographer Gunter Sachs, to make the fallow Wörthersee gem a 5 - star deluxe hostel. More than 120 million euros put the bank in the reconstruction work and the ongoing hotel operation, before the house was sold to the Amisola group after a failed business with the Italians Ugo Barchiesi on 29 July 2011. Behind the real estate investor puts Billa - founder Karl Wlaschek, the personal memories connects to the Schloss Velden: Here he played before his ascent to the department store tycoon as Charly Walker on a band. The rumored purchase price for the lock to be 48 million euros. This luxury hotel is run by the FalkensteinerMichaeler Tourism Group.

Ghost ships

For the headlines " Hypo - ghost ships " in the Adriatic. According to initial fears, the CSI each fifth financed by the Bank ship had disappeared. 2012 could give the all clear Board Gottwald Kranebitter: From 2000 yachts were ultimately only twelve untraceable; with all other to fate and financing clarified.

Negotiations with the EU

Time pressure for Austria

The schedule for the necessary restructuring measures ensures problems with the EU, which sees a distortion of competition in nationalized banks and only allows tight deadlines for re-privatization. 2008, the Bank has applied for the first time still under the state of Bavaria to help. For EU Competition Commissioner Joaquin Almunia so already the five-year period for the re-privatization starts. He urges swift smashing and the " fire sale " of the subsidiary banks still 2013., In a letter he informed on March 14, 2013 Minister of Finance Maria Fekter that he " strong doubts about the validity of the HGAA business model have " and " no decision in favor of the may propose HGAA "as the news magazine" Profil quoted ". " The sum of already received and now want further capital measures do ... from the Hypo Alpe -Adria one of the most subsidized banks in the European Union. I must also remind you that this is one of the longest cases with which we have to deal with since the financial crisis. From the beginning, we heard assurances on the part of Austria, that the bank had taken a significant restructuring in attack. " Austria has asked for more time for restructuring measures. Finally, the Republic of Hypo had acquired until the end of 2009; the new management used in the spring of 2010. A smashing, as required by Almunia until end of 2013 would cost about 16 billion euros in the worst- case scenario. The bank would have to carry, will refund all state aid and dispense with the guarantees of the Federal Fire sales - so that would be an operating business no longer possible and a liquidation unavoidable. To prevent this, a special task force was set up in May 2013, which should continue to negotiate with Brussels. On 3 September 2013, the European Commission via press release announced that transmitted by the Federal Ministry of Finance restructuring plan complies with the applicable EU rules on state aid. According to plan, the marketable parts of the bank to be sold, while the remaining, non-profitable parts are handled in an orderly process. A purchase contract for the Austrian subsidiary was signed in May, the Network of Southeast European banks to be sold no later than 30 June 2015.

Litigation to guarantee

Also, another aspect in the Hypo Causa caused tension between Vienna and Brussels. The EU Commission is qualified on 25 July 2012, Austria's finance guarantee to BayernLB as State aid. This refers to those warranties which have been taken over by the Republic in the course of the government's bailout of 3.1 billion euros. The federal government has filed against this decision aid annulment proceedings before the European Court of Justice: It was not heard in the aid process; In addition, the EU Commission should not the question of whether the money is debt or equity, busy.