Fortis, the belgium bank, said today in a press release that they're expecting a complete meltdown in the US financial markets. Fortis stated they almost went bankrupt themselves, but got saved by an 8 billion injection. They expect bankruptcy of 6000 US banks in the coming weeks. Sorry that the article is in Dutch, not sure if there's an international version out already, but here it is in Dutch: http://www.dft.nl/bedrijven/fortis/...eltdown_rsquo__reden_geldinjectie_Fortis.html
Google translation http://translate.google.com/transla...njectie_Fortis.html&hl=en&ie=UTF8&sl=nl&tl=en U.S. 'meltdown' reason geldinjectie Fortis 28 Jun 08, 09:10 June 28 08, 09:10 door onze correspondent by our correspondent BRUSSELS / AMSTERDAM (DFT) - Fortis expects within the next few days to weeks to complete the collapse of the U.S. financial markets. That explains the bank insurers interventions of the series Thursday at dealing with ⬠8 billion. "We are ready at the last minute. It goes in the United States much worse than thought, "said Fortis chairman Maurice Lippens, who maintains that CEO Votron to live. Fortis expects bankruptcies of 6000 U.S. banks that now lack coverage. "Citigroup, General Motors, there begins a complete meltdown in the U.S.." Fortis took yesterday ⬠1.5 billion with a share issue. At the end of last year was the Belgian-Dutch group ⬠13 billion of new shares for the takeover of ABN Amro, for which it paid ⬠24 billion. Lippens bases its concern on interviews with bankers. "Two months ago we knew not so bad that it is in America. And it will be much worse. â We have a thick mattress needed for the next eighteen months to come when we can bring to ABN Amro. " Two weeks ago reported the U.S. investment bank and adviser to Fortis Merrill Lynch certainly ⬠6.2 billion in additional capital was needed. The VEB yesterday demanded clarification of Fortis: CEO Jean-Paul Votron stopped in late april Fortis maintains that after the purchase of ABN Amro does not need on the capital market. In one year ⬠30 billion in market capitalization destroyed. After Votron last confession kelderde the share price by 19.4%, although yesterday climbed by 4.4% to ⬠10.65. The massive unrest around the bank insurers, especially with our neighbours in Belgium as a bomb broken. While the fuss arose in the Netherlands to the limited financial world, it is with our neighbours the call of the day. Not only is the bank dominates the streetscape, but by the mokerslag for the Belgian volksaandeel are also hundreds of thousands of small investors hit hard. read the rest in the google link
........and Ron Paul said it over 6 years ago! America is getting trashed as we all stand by and watch, where are the true patriots???
American 'meltdown' reason for money injection Fortis. 28th of June, 9:10 BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve ⬠8 billion. "We have been saved just in time. The situation in the US is much worse than we thought", says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also Citigroup, General Motors, there is starting a complete meltdown in the US"
I've translated the interesting parts: (first part from the previous post by GSH1976) American 'meltdown' reason for money injection Fortis. 28th of June, 9:10 BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve ⬠8 billion. "We have been saved just in time. The situation in the US is much worse than we thought", says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also Citigroup, General Motors, there is starting a complete meltdown in the US" "Lippens, the Fortis CEO, based his worries on conversations with bankers. "Two months ago we didnt know it was THAT bad in the US. And it will get even worse. We've got a cushion now to get through the next 18 months, when we can complete the deal with ABN Amro". "The panic concerning Fortis is in Belgium now so big that the CFBA (the controlling Belgium government agency) directed words to the people who have money at the Fortis bank: "people shouldnt run to their banks to get their money out" said the DFBA. Fortis is complying with all legal laws." The rest of the article is about how bad it is at Fortis, not about the US markets.
usual ploy to blame someone else for their trouble: "US screwed us over, but they got it much worth than we did. Over the next couple of weeks we are gonna watch on TV the complete meltdown of US banks. By the way, don't drain you savings accounts at Fortis, we are behind you 100%."
I can't read Dutch. If someone is so kind, what, precisely, is this article alleging? And who is alleging it aside from Fortis?
Having read the whole article I must say that I indeed get that impression. The CEO is scapegoating the US for the turmoil Fortis is in. But aside from that, it's scary enough that Fortis openly states they would have been bankrupt without that 8 billion injection, it's one of the bigger banks in Europe. Initially, many europeans thought the US financial crisis wouldn't hit Europe this hard, I expect more of this in Europe soon ...