Wednesday, February 6, 2013

Nationalization of failing Bank costs 3.7 Billion Euro to Taxpayers


The Netherlands has nationalized bank and insurance group SNS Reaal at the cost of 3.7 billion Euros. This was done in order to prevent its collapse under the weight of property loan losses and to shore up confidence in the financial system. The Dutch government already paid out nearly 40 billion Euros to rescue the financial domestic sector in 2008 when it provided capital injections to ING, AEGON and SNS Reaal as well as nationalizing the large ABN Amro Bank. The rescue will lead to a worsening in the Dutch budget deficit in 2013, already forecast to exceed EU targets. Prime Minister Rutte said “Without a doubt, this is a serious setback for the state budget.” The Dutch Association of Shareholders is considering whether to challenge the nationalization.
www.reuters.com/article/2013/02/01/dutchfinance-cenbank-idUSL5N0B11LP20130201


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