Fortis bank blames Kroes for major loss

19th August 2008, Comments 0 comments

Fortis CEO blames European Competition Commissioner for refusing Fortis permission to postpone the sale of certain ABN divisions to Deutsche Bank.

19 August 2008

THE NETHERLANDS - Fortis bank CEO Maurice Lippens says that his bank has needlessly sustained major losses in the takeover of ABN Bank.

ABN Bank was taken over by a consortium of banks including Banco Santander, Royal Bank of Scotland and Fortis. Fortis acquired all ABN's domestic operations.

Lippens made his statement at a special shareholders meeting intended to provide information on the problems regarding the ABN takeover.

He blamed European Competition Commissioner Neelie Kroes for refusing Fortis permission to postpone the sale of certain ABN divisions to Deutsche Bank. He said her decision cost the bank EUR 300 million.

As a result of the ABN Bank takeover, Fortis needed more than EUR 8 billion in new capital at the end of June. The shareholders were never informed about the need for a major financial infusion.

A number of special meetings are planned in the hope of restoring shareholder's confidence in the bank's management.

[Radio Netherlands / Expatica]

Read Fortis customers grill board in Amsterdam for more information on the special meetings organised by Fortis in the hope of restoring shareholders' confidence in the bank.

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