Berlin ­ - The chief executive of troubled German property leader Hypo Real Estate (HRE) has stepped down in the wake of a massive bail-out operation, the company said Tuesday.

Georg Funke resigned with immediate effect, the banking group announced in Munich. It said the supervisory board would decide on a successor later Tuesday.

HRE was saved from going under by a state-led 50-billion-euro (68- billion-dollar) operation announced Sunday after a a 35-billion-euro bail-out put together a week ago proved inadequate.

German Finance Minister Peer Steinbrueck said it was "unthinkable" to keep dealing with the financial institute's top management because the government and other banks involved in the rescue operation were not told earlier that HRE's problems were so grave.

He charged that HRE, at the same time as seeking state aid, had used lawyers against the government so as to "escape its responsibilities."

HRE's difficulties prompted Chancellor Angela Merkel to issue a pledge to guarantee all savings deposits in Germany. (dpa)