Are we alone in this?
What about other countries? Are any of them in as bad of a situation as us? How do we compare to other large industrial countries?Thanks.
our government seized a 100% control of Fortis. Only after
taking a 49% share a week ago. But that didn’t do the job apparently,
as enormous amounts of cash were taken out in the week after. So the
next try: full, factual nationalization.
Fortis is, by the way,
also one of our biggest insurers.
This Belgian based bank
bought the Dutch Abn-amro bank for about 24 billion euro just before
the credit-crunch came to surface. After that Fortis had problems
financing the deal. The highest bid they got for Abn-amro last week
was 5 billion.
This is the official spin anyway. The Abn-armo
thing probably made them the first bank in the Netherlands to get
nationalized but they have also more than a fair share of (almost)
worthless paper on their balance sheet. Eating away their
This operation did cost
the Dutch taxpayer 17 billion euro’s on a population of 16 million.
So I can tell you: you are
not alone in this.
Well, I am not sure if i can recognize all problems in Germany. There had been a lot more than somebody ever could imagine.
At first some government-owned banks where destroyed…
1. The IKB, lending money to small and medium-sized companies, was sold to Lone Star for 100 Million Euro – since 2007 the German Taxpayer paid something around 10 Billion Euro for this story. "Story" because this kind of business was not adequate for this company.
2. A small story: The State Bank of Saxony lost too much money in a Dublin Branch. The Bank was closed in April. Only 300 Million Euro Taxpayers money where crushed, but furthermore the prime minister retired.
This week the largest real estate financing company Hypo Real Estate get into trouble (one of the 30 largest companys). Taxpayer and banks give 35 Billion Euro new loans.
I am not sure how much money the German banks lost… something around 60 Billion Euro I guess.