Are we alone in this?

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jms2112's picture
jms2112
Status: Member (Offline)
Joined: Sep 4 2008
Posts: 14
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.

Fogle's picture
Fogle
Status: Bronze Member (Offline)
Joined: May 18 2008
Posts: 35
You are not alone: the latest from the Netherlands

Today 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 creditability.

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.

Mr.PR's picture
Mr.PR
Status: Member (Offline)
Joined: Oct 3 2008
Posts: 4
Something from Germany

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.

3. The Bavarian State Bank lost something around 4,5 Billion Euros in the same kind of business "opportunity". Taxpayers are happy.

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.

6damon9's picture
6damon9
Status: Member (Offline)
Joined: Aug 31 2008
Posts: 7
Iceland's Krona Falls ...
http://www.bloomberg.com/apps/news?pid=20601085&sid=aIjig6x5M5FM&refer=europe

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