Of all the spectacular banking blow-ups triggered by the financial crisis, few can compete with that of Hypo Alpe Adria. Fuelled by the patronage of far-right state governor Jörg Haider, what should have been a sleepy Austrian regional lender blazed through the Balkans in the 1990s and early 2000s, disbursing billions of euros against the dubious security of high-end resorts, golf courses and luxury yachts.
Problems with this asset-based business model started to emerge even before 2008 and snowballed as real estate bubbles burst across southeastern Europe in the aftermath of the financial crisis.
Thanks for your interest in Euromoney!
To unlock this article:
