Manuela Better, the chief executive officer of Deutsche Pfandbriefbank (PBB) and Hypo Real Estate Holding AG (HRE), resigned yesterday in the wake of German government intervention blocking the sale of Depfa Bank last month.
The government’s financial market stabilisation fund, known as Soffin, blocked the sale of Depfa, an Irish bank which makes loans to the Ireland’s public sector, to Leucadia and Massachusetts Mutual for €320m, opting instead for a 20-year wind-up through bad bank FMS Wertmanagement.
The Depfa loan book stood at €49bn at the end of 2013.
In a PBB statement issued yesterday, Better said: “Following FMSA’s decision not to sell DEPFA but wind it down under the responsibility of FMS Wertmanagement, the option I did not favour, I no longer saw any basis for carrying out the duties of my office.”
Andreas Arndt has been appointed acting CEO for both Deutsche Pfandbriefbank and Hypo Real Estate Holding until a successor can be found.
The timing will be difficult for PBB which is preparing for a re-privatisation by the end of next year.
PBB’s pre-tax profits for the first quarter were €38m and closed €1.6bn in new business over the period.