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Central bank, financial sector under fire in economic crisis reportMonday 10 May 2010 The financial sector in the Netherlands 'took unacceptable risks, and lost sight of the public interest,' the leader of a parliamentary inquiry into the economic crisis told reporters on Monday. Speaking at the publication of the inquiry report, Socialist MP and inquiry chairman Jan de Wit criticised the main players for carrying on as if it was 'business as usual'. 'What stood out most of all is the lack of critical self reflection', De Wit said. And, he said, he was disappointed that the urgency for reform was fading. The causes of the crisis have not disappeared and could lead to a new crisis with even more serious effects, De Wit said. Banks, regulators, shareholders, savers, politicians, ministers, accountants and credit agencies all come under fire in the report. ABN Amro The report says the nationalisation of ABN Amro bank would have been unnecessary if the central bank and then finance minister Wouter Bos had refused to give the all-clear to the bank's takeover by a consortium because of the risk to the stability of the Dutch financial system. The central bank could also have placed more stringent conditions on Icelandic bank Landsbanki when it entered the Dutch market with Icesave, the report said. De Wit said he would not judge the role of central bank president Nout Wellink, saying 'this inquiry is not a tribunal and we are not here to make heads roll. 'But it is clear that we see shortcomings at the central bank,' the Financieele Dagblad reported him as saying. The inquiry was set up in 2009 against a background of political frustration about the crisis, which began in 2007. The crisis led to the state being forced to nationalise ABN Amro and Fortis banks and make loans of almost €14bn to ING, Aegon and SNS Reaal. Commission members questioned over 40 bankers, financial service sector regulators, politicians and academics in January and February. The report is unlikely to have much in the way of political ramifications because the cabinet has already collapsed and the then-finance minister Wouter Bos has quit politics. Central bank president Nout Wellink will also step down next year, Nos says. © DutchNews.nl
"Central bank president Nout Wellink will also step down next year, Nos says." Why not right now? Time to fall on his sword. By bobsocks | May 10, 2010 8:10 PM banks were free from any regulations and played with funds of investors and the depositors " casino" style gambling and that caused the 'black hole" in our economy. Regardless of who is governing the nation, the banks needs to be required to have around 6 percent of thie own funds as cash reserves and must be required in future only to use investors money in these types of "casino" style investing leaving the depositors funds untouched. By Harish | May 10, 2010 9:29 PM andrew, savers were critcised because when icesave were allowed into the market offering savings rates that were too good to be sustainable, people (and businesses and local governments) couldn't get their money into icesave quick enough. Greed thus, and that in such a so-called calvinistic country! By ex-banker | May 11, 2010 11:05 AM
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"This inquiry is not a tribunal and we are not here to make heads roll"
Why should savers "come under fire" (and note that they are listed before politicians, ministers, accountants and credit agencies)? Why should those prudent enough to put cash in a savings account for a rainy day also fit into the blame game frame? I have a savings account with a Dutch bank and all I see is the interest coming down, regularly. Time to go offshore.
By Andrew | May 10, 2010 6:08 PM