Tiny German Bank Gets $834 Million Rescue After Investment Spree
6 Articles
6 Articles
Volksbank Brawo, a small German cooperative bank, reported that it will receive support measures of up to EUR 723 million (US$ 834 million) after facing cash losses in a large portfolio of investments. The voluminous financial contribution, coming from the mutual protection fund of the cooperative banks sector, became necessary after Brawo identified potential losses of around EUR 608 million in its large portfolio of investments — which include…
Volksbank Braunschweig-Wolfsburg needs more money than all other rescued branch banks. The branch association BVR even intervenes as a shareholder.
"Negative valuation effects" weigh heavily on the Volksbank Braunschweig-Wolfsburg (Brawo). The collateral of the banking association (BVR) assumes high guarantees and becomes a shareholder of the cooperative credit institution. What this means for the dividend of the members.
The Volksbank Braunschweig-Wolfsburg (Brawo) is putting pressure on 608 million euros minus. Support measures are intended to compensate for the result. How Brawo now wants to renew its business model.
The Volksbank Brawo is hit because of its real estate business. The financial statements presented now show a dramatic minus.
Coverage Details
Bias Distribution
- 67% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
