Munich - Kurt Viermetz, chairman of Hypo Real Estate (HRE), resigned Friday, 12 days after the German government backed a huge and troubled bail-out for the struggling mortgage lender.

He was the second senior man to leave the bank, under pressure from the German government and commercial banks, which claimed HRE had under-stated its exposure. The chief executive of HRE, Georg Funke resigned earlier this week.

HRE announced in Munich the departure of Viermetz, who chaired the HRE supervisory board, a panel that hires the chief executive and sets broad policy. Berlin had demanded both men be removed.

Under a bail-out forged on September 28, then re-engineered on October 5 when it proved inadequate, HRE is receiving 50 billion euros (70 billion dollars) in loans from the commercial banks and German central bank.

The sum was secured with a 35-billion-euro federal guarantee and bonds that are normally not accepted as security by the state.

HRE, Germany's first casualty of the current financial crisis, was brought low by a stricken subsidiary, Depfa, which has its head office in Dublin, Ireland and which lends money to municipalities to build roads, railways, airports and other public facilities. (dpa)