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.
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