German bank dumps €3.6bn of bad loans with US investor

Hypo Real Estate Bank, part of the property group recently spun out of Germany's HVB, has offloaded €3.6bn ($4.4bn) of mostly bad loans to Lone Star, a US investment company.

The bank claimed it was the largest ever deal of its kind, which would have "considerable positive impact" on the group's profits next year, and said it had now completed its restructuring in Germany.

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