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HRE could need more cash

Hypo Real Estate (HRE) is likely to need more new equity than originally expected, its chairman has said. “It would not surprise me if a €10bn (£8.6bn) capital did not suffice for HRE,” Michael Endres said. Germany’s highest-profile casualty of the financial crisis has been propped up with more than €100bn in capital and guarantees, most of which was provided by the German state. In mid-May, Germany’s state-owned Financial Market Stabilisation Fund won permission from the European Commission to acquire HRE. But the Treasury said that caution should be exercised when drawing conclusions from the data.