Belgian-Dutch Fortis in the eye of the storm

(Archives) The three Benelux governments, little suspected of state intervention, have decided to semi-nationalize the Fortis bank, subject to strong speculation, to avoid its bankruptcy. Fortis is the first major bank in the Eurozone to suffer the wrath of the financial crisis.

An institution

Fortis is the leading financial institution in the Benelux (Belgium, Netherlands, Luxembourg) and the twentieth in Europe. It employs nearly 65 people (full-time equivalent), including a third in Belgium. And 000 million customers have an account there. It is also the sponsor of Sporting d'Anderlecht, the emblematic team of Belgian football. But with the takeover of the Dutch ABN Amro, the bank undoubtedly had eyes bigger than its stomach, and by betting on the American real estate market, took risks, today sanctioned.

A crisis negotiation

Throughout the weekend, there was a succession of crisis meetings which notably brought together the Benelux Finance Ministers, the President of the European Central Bank, and even Christine Lagarde, under the presidency of the European Union and the impact on some French banks. After considering all the private solutions, such as ING or BNP Paribas, the negotiators ended up, at 23 p.m. Sunday, by resolving to an “all public” solution, by injecting 11 billion euros into the company. Each country received in exchange 49% from its national subsidiary. A partial nationalization in some way. Without immediate success. The Fortis title lost 24% on the Brussels stock exchange on Monday.

The endorsement of the Commission

The European Commission has been very closely associated to negotiations. And it should be very flexible in the application of competition regulations. A tacit endorsement of sorts. AT " exceptional situation, intelligent appreciation “, we explain at the European headquarters.

Nicolas Gros Verheyde
(article published in Ouest-France)