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.
- 1Where’s the money? UN tax report details billions moving around the world
- 2Uber partners with Alipay for Chinese travellers worldwide
- 3IMF sub-Saharan Africa 2016 outlook sees weaker growth
- 4Berlin cracks down on Airbnb style renters to protect affordable housing
- 5No buyers for Philips lighting division means it gets spun off
Wires > Business
- 04:19 CET Glencore considers selling gold mine worth over $2 billion -…
- 04:06 CET Brazil prosecutors file 30 billion pounds lawsuit against Vale…
- 03:18 CET Rich and powerful warn robots are coming for your jobs
- 03:12 CET U.S. Fed’s Lockhart – Brexit could ‘loom large’ over June policy…
- 02:48 CET Shares lose to bonds as deflation danger dominates
- 01:05 CET British shop prices fall at joint slowest rate in eight months
- 23:01 CET Deutsche Boerse to keep Frankfurt focus after LSE merger – CEO
- 20:11 CET Bidders emerge for Tata Steel’s UK assets