the situation occur in In the mid-1990s some of the key subsidiaries of the bank started making massive loans to property developers. It also set-up property-backed funds that offered generous guarantees to retail investors.In 1999, the Berlin’s property and rental bubble burst which led to massive losses and liabilities in their property-linked portfolios.In July 2001, BgB reported a massive loss of E1.65 billion for the year 2000. Early in summer 2001, the Berlin senate was informed that Bankgesellschaft Berlin needed an emergency transfusion of E2 billion in new capital. In September 2001, Berlin pumped E1.75 billion of new capital into the bank to secure its future.