Is Fortis' Nationalization in Europe a Result of the Bank Storm?

In summary, the storm has finally reached the shores of Europe. Fortis is partly nationalized in Holland, Belgium and Luxemburg - I'm a customer with Fortis, btw. It is the biggest bank in Belgium, and one of the biggest in Holland.
  • #1
vanesch
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It seems that the storm has finally reached the shores of Europe. Fortis is partly nationalized in Holland, Belgium and Luxemburg - I'm a customer with Fortis, btw. It is the biggest bank in Belgium, and one of the biggest in Holland.

http://news.bbc.co.uk/1/hi/business/7641132.stm
 
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  • #2
and -

Mortgage lender Bradford & Bingley (B&B) is to be nationalised, the government has confirmed.

http://news.bbc.co.uk/2/hi/business/7641193.stm

I wonder how much bad debt they have in the US?

It appears UK/EU economies are similarly over-leveraged as is the US.
 
  • #3
I'm way out of my league her, but this is my understanding as told in de media:

Actually there seems not to be so much wrong with Fortis at all. It's just a question of thrust and faith. Fortis bought the Dutch ABN-AMRO bank but now when it is time to produce the cash for that, there were some solvability problems due to crises elsewhere in the world. So Fortis finds itself unable to cope with the agreement and is working on solutions. The thing what would hurt the most is that people don't understand this and start panicking, leaving the bank. And of course, a bank without customers is no bank.

So proceed, carry on, nothing to see here.
 
  • #4
"finally reached"? B&B is the second bank to be nationalised.
The nationalisation of Northern Rock in February was one of the first signs of the credit crunch. The banking industry is so international nowadays that severe problems in one country will immediately affect whole developed world.
 
  • #5
Ironically it's not clear there was anything actually bad about Northern Rocks portfolio in terms of bad mortgages. It just needed short term credit at a time when the city was suddenly refusing to lend cab fare, the request to the bank of England for credit caused a panic and a run on the bank.
 

What is the "Bank storm" and why is it reaching Europe?

The "Bank storm" is a term used to describe the sudden influx of financial institutions into Europe. Due to various economic and political factors, many banks are expanding their operations into Europe in order to tap into new markets and increase their global presence.

How will the "Bank storm" impact Europe's economy?

The exact impact of the "Bank storm" on Europe's economy is difficult to predict, as it will depend on various factors such as the size and strength of the banks entering the market, as well as the response from existing European banks. However, it is likely that this influx of competition will lead to increased innovation and potentially lower costs for consumers.

Which countries in Europe will be most affected by the "Bank storm"?

The countries that will be most affected by the "Bank storm" will depend on where the banks are choosing to expand. However, it is expected that major financial centers such as London, Frankfurt, and Paris will see a significant impact.

What are the potential benefits of the "Bank storm" for Europe?

One potential benefit of the "Bank storm" is the potential for increased job opportunities and economic growth as new banks set up operations in Europe. Additionally, increased competition can lead to better services and lower costs for consumers.

Are there any potential risks or challenges associated with the "Bank storm"?

While the "Bank storm" may bring potential benefits, there are also risks and challenges that come with such a large influx of financial institutions. These include potential disruptions to existing banks, regulatory challenges, and the possibility of market instability if the expansion is not managed carefully.

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