Monday, 29 September 2008
Fortis, Bradford and Bingley, Glitnir, Hypo Real Estate...Who's Next?
"The Netherlands, Belgium and Luxembourg agreed to inject €11.2 billion ($16.37 billion) into Fortis NV on Sunday, after France's BNP Paribas SA and Dutch financial firm ING Groep NV walked away from talks to acquire the company over the weekend.
The rescue effort came after Fortis's shares came under heavy selling last week."
I suppose they look at the balance sheet and discovered massive amount of toxic assets. The CEO has been fired and replaced. So the contagion is spreading even before the real problems in Europe have even begun (i.e generalized housing slump)
"In the U.K., mortgage lender Bradford & Bingley PLC, which helped fuel a property boom in Britain, is being nationalized, in what is the second British bank to be taken under government control this year"
That is something I never understood. It was pretty clear that such institution was participating into making the housing market a speculative one. Price were pushed way out of their fundamentals, why so much institutions were blind? where was regulation?...you wonder.