Fortis still in trouble despite bailout
The massive Fortis financial group is still in danger even after the Dutch government decided to nationalise the Dutch operation. It seems as though Belgium and Luxemburg officials have been scouring the markets for buyers of the pieces which are left but to no avail as yet. Only a week ago we saw $15 billion injected into the group by three separate governments but this seems to have been too little too late.
Financial markets in Europe and around the world are moving at lightening quick pace and even a substantial rescue package is not ensuring the immediate future of some operations. As we have mentioned time and time again, when the confidence in any operation has been dented it can be very difficult to retrieve - even if you are throwing billions of dollars at a rescue.
It will be interesting to see what happens to Fortis in the short term as the collapse of this group would blow a large hole in the ever decreasing confidence in European markets. It seems that after making noises about saving the group, the three governments involved may well be asked to dip their hands into their pockets again.
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