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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