Faymann Evokes 1931 Austria Creditanstalt Crash on Hypo Alpe
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Austrian Chancellor Werner Faymann said the government is right to avert the collapse of Hypo Alpe-Adria-Bank International AG, as he cited the precedent of Creditanstalt, whose crash helped trigger the 1930s depression.
Hypo Alpe’s bonds dropped to five-year lows after Faymann said the risk remains that the lender’s insolvency could affect other Austrian banks or the government. Hypo Alpe came close to collapse in 2009 after an ill-fated expansion in the former Yugoslavia.