The Dutch government has nationalised bank and insurance group SNS Reaal at a cost of 10 billion euros.
It said that was to prevent the lender’s collapse from property loan losses and to shore up confidence in the financial system after a private investor-led rescue failed.
The move highlights the fragility of European banks and the continued exposure of taxpayers five years after the financial crisis erupted.
The move shows how, despite billions of euros of bailouts and regulators’ attempts to clean up the industry, some European banks are struggling to recover from the 2008 financial crisis amid a weak economy, and how the region’s debt-laden governments – and in turn taxpayers – remain on the hook.
That is likely to prompt an outcry from a Dutch public which has already suffered years of austerity.
“The bankers get more and more money, and the people at the bottom foot the bill,” said Jan-Erik Lubbers, a pensioner, as he sheltered from the rain under a shop awning in The Hague.
The rescue will lead to a worsening in the Dutch budget deficit in 2013, already forecast to exceed European Union targets. That is particularly embarrassing for Finance Minister Jeroen Dijsselbloem, who only last month took over as head of the Eurogroup of eurozone countries, which are trying to put a sovereign debt crisis behind them.
Several other European banks are also struggling to free themselves from underperforming assets. French bank Credit Agricole and Deutsche Bank have just unveiled big writedowns.
- 1To Russia with cash: Chinese tourists offset fall in Western visitors
- 2French and German finance chiefs discuss economic weakness and eurozone recovery
- 3International Energy Agency says oil glut is poised to worsen
- 4Partnering to grow Europe
- 5TUI shifts destination focus over security concerns in Turkey and North Africa
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International news | euronews, latest international news
- 3Most Istanbul blast victims ‘were German’, says Turkey
- 4Madrid to appeal Catalan road to independence from Spain
- 5Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 6Partnering to grow Europe
- 7Moldova: protesters storm Parliament
- 8Hope vs harsh reality: challenges to global education goals in the 21st century
- 9Extras : euronews : the latest international news as video on demand
- 10Norway sends Syrian refugees back to Russia
- 11Merroussis clinches the 33rd Athens Authentic Marathon
- 12‘National’ funeral for Celine Dion’s husband ‘over the top’
- 13Jorge Lorenzo clinches his third MotoGP title in Valencia
- 14Special Reports : euronews : the latest international news as video on demand
- 15Benzema questioned in French sex tape case
- 16latest Learning World - All Programmes | euronews : the latest international news as video on demand
- 17Paris: “I would rather see my brother in prison than in a cemetery”
- 18Brussels remains on high alert: ‘multiple operations underway’ across Belgium
- 19International breaking news | euronews online world breaking news in video
- 20account : euronews : the latest international news as video on demand
Sanofi earnings to be ‘stable’ despite declining sales
TUI shifts destination focus over security concerns in Turkey and North Africa
Peugeot Citroen compensates Iran for sanctions prompted pull out
Volkswagen emissions scandal delays 2015 financial results and shareholders’ meeting
Toyota in optimistic mood over China and US
Wires > Business
- 01:07 CET Millennials are shifting car ownership model; ask Toyota
- 00:58 CET Japan January wholesale prices fall 3.1 percent year-on-year
- 23:44 CET HSBC money laundering report’s release likely delayed – U.S. judge
- 23:39 CET Viacom CEO rails against ‘naysayers’ as sales miss estimates…
- 22:32 CET Banks eye more cost cuts amid global growth concerns
- 22:12 CET GM recalling 473,000 SUVs, pickups in North America for brake…
- 22:08 CET Exclusive – Apex Capital CIO departs to launch hedge fund – letter
- 22:03 CET Amazon expands logistics reach in China