HRE published its full annual accounts over the week-end.
The number that was pre-released to the press some time ago was a loss of 5.5 bn € in 2008.
A quick look into their balance-sheet tells us that they really lost 7.8 bn €, not 5.5 bn €, because an additional 2.3 bn € was booked into their "revaluation reserve", which is now a negative 4.2 bn €.
Total equity is now officially negative, at -1.5 bn €.
We are also told that "pre-tax profit is expected to be negative at least in 2009 and 2010", because "further impairments ... expected as a result of the downturn in the economic climate".
Can anybody tell me any reason why the government is offering 1.4 € per share for a bankrupt bank with negative equity and more losses in the pipeline?