DEPFA Bank was established in 1922 under auspices of the Prussian government, and was asked to provide financing for residential construction projects.
Its more recent history began in the 1950s, when the bank become a federally owned corporation, and was to provide for a wide range of residential mortgages.
When the corporation lost its tax-free status in the 1970s, it entered the commercial lending industry, becoming the largest German underwriter of public covered bonds.
[4] The bank ran into liquidity problems in 2008 as a result of the economic and financial turmoil in the United States.
[5][6] Through a series of bailouts, the German government ended up with 100% ownership of Depfa's parent company, Hypo Real Estate.