Ok, please explain why banking and insurance group "Fortis" is being bailed out by the Netherlands, Belgium and Luxembourg to the tune of £9bn when last month Fortis announced it made £1.2bn profit in the last six months?
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Fortis’s woes lie with ABN Amro break-upOriginally posted by Churchill View Post -
They had been spinning all year that, despite all the stuff going on, they would still turn in a profit. Technically correct but a wee bit overshadowed by the impending doom facing them with the ABN buyout. They’ve now been through 3 chief executives this year. The sub-prime plus Lehman positions hurt them but that was nothing compared to the problems they had raising the funds to finish off the ABN buyout – basically they were looking at a fire sale to raise the (8 bn?)Originally posted by Churchill View Post
Last week the shares caved in and there looked like being a run on a bank across three countries. Must admit, I had an interest in the outcome as I’ve over 50k in my Fortis business account
What amazes me is that they got this sorted in 2 days – nothing here happens that quickly. I suppose it was the prospect of a French bank buying it that focused their minds!
As well as the bailout they are flogging off the ABN Dutch business for 10bn having ‘paid’ 24bn for it last year
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