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'Brussels blocked rescue plan for troubled SNS Reaal' (update)

Wednesday 16 January 2013

MPs from the ruling VVD Liberals and Labour party (PvdA) have refused to comment on reports that Brussels has blocked a potential rescue bid for struggling financial services group SNS Reaal, the Financieele Dagblad reports on Wednesday.

The paper claims the European Commission scuppered the rescue plan by banning the involvement of ABN Amro and ING.

MPs declined to comment on the claims, saying they have not yet seen any proposals from finance minister Jeroen Dijsselbloem.

State support

The Dutch finance ministry favours allowing the three big Dutch banks (ING, ABN Amro and Rabobank) to be involved in an eventual rescue deal. However, Brussels is opposed because ING and ABN Amro have themselves received state support, the Financieele Dagblad says.

The paper says the ministry and Dutch central bank discussed the issue with Brussels last year but the 'signs were not encouraging'.

Other sources have also told the paper ABN Amro and ING have been excluded and a spokesman for the Commission said in a reaction the two banks 'may not make any acquisitions'.


SNS Reaal has been hit by heavy losses at its property arm and some form of rescue is looking increasingly likely.

One option would be the formation of a 'bad bank', which would manage the property portfolio. But now ING and ABN Amro have been ruled out as possible shareholders, this is unlikely because Rabobank does not want to go it alone, the FD says.

A state capital injection would now seem to be the likely outcome, although this is politically sensitive, the paper says.

SNS is due to present its annual report on February 14 and insiders expect a solution for the property division will be on the table by then.

© DutchNews.nl


Readers' Comments

This is the problem with Europe, countries can't manage their own affairs. If you are in the Euro the ECB should be the backstop for these institutions just as the Bank of England is in the UK which is independent of the Government, yet another reason we are better off out.

By Joe Thorpe | 16 January 2013 8:31 AM

So, here we go again, another useless bank creates mortgage debt via the fractional banking system, and is automatically bailed out by the taxpayer. Let the buggers fail, look after the depositors, and drop the ball for the rest. Why can we not follow the example of the Icelanders where, the Mortgage debt was forgiven, after all, the debt was produced digitally through a corrupt banking system, its not real money? All we need is awareness and people power.
There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. – John Adams, 1826

By Highlander | 16 January 2013 9:18 AM

Sorry for the customers of the bank but I never liked this bank and their representatives. I always had a feeling that they don't like people coming from India. Went to open an account and they did not treat me well.

By Sagar | 16 January 2013 4:28 PM

Brussels has got this one right for once.
Why not let the bank go bust, and bail out the poor customers instead. And a criminal investigation into what happenned. The property crash is caused by the banks not giving mortgages, but spending the cash on massive salaries for their bosses instead. To allow ABN and ING to take over would be to reward yet more of their disgusting and irresponsible behaviour.

By Andy | 16 January 2013 11:03 PM

I think SNS should bite the dust, so the other banks can see that it is no longer safe to gamble in the name of some fictitious growth.

By George | 17 January 2013 8:03 AM

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