Banking expert Zmuegg:

“Lending without due diligence is a mortal sin”

Gerald Zmuegg had nothing good to say about those responsible at Hypo Vorarlberg.(Bild: ZVG)

Financial expert Gerald Zmuegg assesses the situation surrounding Hypo Vorarlberg's Signa transactions for the "Krone" newspaper. The Vorarlberg state bank does not come off well: whether it's the Managing Board, the Supervisory Board or Governor Markus Wallner - the bank acted too naively at all levels.

"Krone": Did Hypo Vorarlberg take too high a risk when granting the loan to Signa? 
Gerald Zmuegg: Anyone who puts the Signa loans - as far as is known - in relation to the equity and the proportion of all loans granted by Hypo Vorarlberg will find that Hypo is the most affected of all banks. Measured against these two points, there is an extreme risk that other banks do not have. If I grant 200 million euros in loans but only have 1.4 billion euros in equity, then that is, to put it mildly, very sporty.