In May 2007 the BayernLB bought 50% plus one share (controlling stake) of HGAA for 1.63 billion Euros.
On 14 December 2009, BayernLB, Kärntner Landesholding and Grazer Wechselseitige Versicherung sold their stakes in the bank to the Austrian government for 1 Euro each. The bank was nationalised by the Austriangovernment to avert a bank collapse. It is expected that between 13 and 19 billion Euros of outstanding loans will never be paid back; to avoid bankruptcy, the Austrian taxpayers will have to cover this loss. 
The headquarters, which accounts for around 500 employees, is located in Klagenfurt, Austria and is responsible for controlling the subsidiary banks in Austria, Italy and South-Eastern Europe as well as those markets from which the bank is currently withdrawing (wind-down markets).
As of February 2014, the HGAA situation was unsolved, causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event.