Germany's Duesseldorfer Hypo bank sold to deposit guarantee fund

A private mortgage bank that experienced difficulties because of the ongoing market turbulence has been sold to a deposit guarantee fund, the German Banking Association said Tuesday.

The Schuppli Group, the owners of Duesseldorfer Hypothekenbank Bank AG, which has assets of nearly euro27 billion (US$42.9 billion), sold it to the fund that is operated by the association, whose members include big and small financial institutions. Financial terms were not disclosed.

The aim of the sale was to "overcome the bank's difficulties that were caused by the current strained market environment," the association, or BdB, said.

Friedrich Munsberg, a …