bondholder's are being thrown under the bus. PIMPCO got it's last big guarantee with FNM, FRE. That Bill Gross continues to not understand that is just too cute.
The coming implosion of WB will look exactly like JPM/WM. Can't say who will be the acquiree though. BAC, WFC, C or ????
Update (1:50): Never mind the speeches from the people who aren't supporting the bailout regardless of what shape it takes. The real action is behind the scenes, and centers around Eric Cantor, the number three Republican in the House.
Cantor, who drafted the Republican insurance plan, was still voicing doubts about whether there was a deal when he appeared this morning on CNN's Late Edition.
"We are not ready to say that a deal is done," Cantor said.
Officially, Cantor is holding out because he says he hasn't seen a draft of the bill yet. But on Capitol Hill many suspect that House Republicans may still be looking for a way to vote against the bailout. A source tells us the Democrats may have overplayed their hand by giving so much credit to House Speaker Nancy Pelosi for the breakthrough. This could have alienated Cantor's cadres, who were hoping John McCain would get credit for an "improved bailout." (A side note: Cantor was closely considered as a possible running mate by John McCain.)
Max writes:
What will the new Chinese/Japanese/Asian bloc currency be called?
The Dollar. But it will have Mao's picture on it.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Barter trade looks good going forward for some time if the federal reserve dollar's promise is no longer tenable.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Morons in the Congress want to play POLITICS with the Holy Handgrenade of Antioch?
We get the government we deserve.
Sell everything on Monday, beat the crash.
We obviously have no real economic leadership- don't call me,I won't be flying to DC to deal with this nuthouse until we get our 100 days.
Look at the Europeans, just nationalize on failure, and destroy the stupid parts. Frigging morons still refuse to admit the lack of any real regulatory scheme made this possible.
Consumer is dead, Housing market is cooked. Sophisticated det instruments are a thing of the past, a global economic slowdown. Where is GDP growth going to come from over the next decade?
Morons in the Congress want to play POLITICS with the Holy Handgrenade of Antioch?
It's obvious that there's no real sense of urgency for a lot of these guys. The problem is either overstated in the extreme, or they're astoundingly dense.
Paulson's worth over 500 million dollars. He can almost singlehandedly bail out Belgium. And when he gets rehired by GS to oversee the 700 billion dollar boondoggle, he will be a billionaire with a year or two.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Really five times as many as the Japanese killed 30 million Chinese during WWII era. Go to China and visit all the memorials.
Paulson's worth over 500 million dollars. He can almost singlehandedly bail out Belgium. And when he gets rehired by GS to oversee the 700 billion dollar boondoggle, he will be a billionaire with a year or two.
We just need to get used to the 21st century reality that the US no longer has the economic capacity to rule the world. We probably don't even have the capacity to keep a 12 aircraft carrier fleet maintained anymore.
Key to that loss of status is the fiction that having our financial base built upon 20+% financial institutions - which produce only leveraged assets and not real economic output.
The real thing to downsize until it is small enough to drown in a bathtub is megasized banks. If they can't be small enough to drown, then we should split them up and cut off ANY federal government money support, while regulating them within an inch of their life while they are still megamonsters.
I can't wait to see you guys resolve all of the chinese/japanese bad blood here. But can you do it after we mop up the insolvency/confidence blood in progress. TIA.
An interesting consequence of natonalized banks in the UK (and of EU regulation):
NORTHERN ROCK is within days of being forced to stop taking savings from new customers after a rush of deposits into the nationalised bank. More than £1 billion of savings has flooded into it in the past two weeks, following the continuing chaos that has engulfed the banking sector. The government guarantees underpinning Northern Rock have been encouraging savers to move their cash.
The influx has pushed the bank close to the caps imposed by European competition laws which restrict its ability to compete with the banking industry for customer deposits.
Max, are "We the People" considered to be an "event" in that scenario?
No doubt about it. That's why the delay: there is real opposition to this thing, and there's no upside for Congress. Boy Who Cried Wolf * 1,000,000.
Politically, the appearance of action is the best option. If they pass the bill and it fails, they're toast. If they pass the bill and it works, people will only see the enrichment of bankster types. If they vote it down and the market crashes, they get blamed.
However, if they "work real hard," and events overtake them, both parties can avoid blame by blaming Bush and Paulson for not giving them enough time. They'll also have political cover to take action once main street starts really feeling the pain.
Each US B-2 bomber cost about $2.2 billion? Put them on eBay.
Guestimated cost of the US missile defense system is about $30 billion. Will they ever show in a real test that it can hit a actual surprise multi-warhead missile?
Does anybody really believe that any country would attempt to invade the US, the most well-armed citizenry in the world?
i'm guessing that the abyss that paulson bernanke cox and bush stared into..
was one where the entire system lock stock and barrel comes down around them (us?)
they take the entire system of public and private retirement investments, municipal bonds, and all equity investments that upper middle class americans and the rich have accumulated...
and drag it down into the whirlpool along with the toxic investments.
as a principle, i dont like saving the miscreants and the pompous elite...
but we are shackled at the angle to them in a long chain, and if they are tossed overboard maybe we all get pulled down and down and then drown together.
i continue NOT to support the bailout for several reasons especially cause i see no end in sight and i doubt it will work..
but also, because the proposal courts lacks cram down authority for the courts.
Intrade shows the bailout plan passage likelihood plunging to 53%.
It's not a perfect site, but it does reflect conventional wisdom pretty well. For some reason, the probability of passage has gone down notably since Saturday.
I am betting it's the clear signs from House GOP that they will rebel combined with certain careful phrasing from Pelosi. Both sides are preparing to yank support under certain circumstances.
ABN Amro will be sold to ING.
hmm and does ING have the money? i thought that they are also in peril. i mean come on, insurance company with banking? where have i heard that ...
Actually it wasn't clear if ABN Abro would be sold or ceded. All this is coming from a photograph of a briefing paper carried by an offical from Fortis a little while ago.
My parents have much of their life savings in Fortis. They kept an account their since they lived in Belgium decades ago and it used to be called Societe Generale. They are retired now. They keep a euro account there and a USD account. We never imagined this would happen this has been pretty scary given that Belgian deposit insurance is only 20,000 euros. We are trying to decide whether to send a fax to transfer all the money out first thing tomorrow. They also have an account a Chase and we honestly thought that would be the first to go. This is no joke when it hits for real. It is super scary. I have been sitting here all day watching twitter and waiting for news.
Off loading ABN Abro now opens the door for BNP Paribas to buy the rest of Fortis. They had been balking at having anything to with Abro.
The big problem for consumers is that Fortis offered a lot of products that were halfway between life insurance policies and savings accounts. It is not at all clear if these accounts are covered by the Belgian state.
If true, no wonder Nellie Kroes (EU Competition Commissioner) is involved in the talks. A combined ING + ABN would surely have a whopping dominant position in the Netherlands.
Well - over here in occupied Belgium, where the ratio of Japanese to Chinese tourists is about the same.
Went to a Fortis ATM to grab some euro's - cash withdrawal was "temporarily unavaiable" No queue but several other people in there too - went up the road to ING and successfully withdrew there though.
This "leak" of the Fortis bailout plan is amazing. I believe the guy holidng the document is Fortis CEO (appointed on Friday). Doesn't this guy have any sense or can't he afford a document wallet? Sheesh...
The global hangover from this credit crisis seems formidable. Imagine what it will be when we wake up from the current environmental destruction and resource consumption binge. Global hangover guaranteed, but no more government bailouts then...
For all those Paulson haters - HE HAD TO DIVEST HIMSELF OF ALL HIS STOCK IN GS PRIOR TO TAKING THE POST OF TREASURY SECRATARY. The stock is not in a blind trust it got sold in 2006.
I am going to guess tha the only thing paulson has planned for 2009 is a nice long vacation. He may stick around for a bit to help trasition.
Did any of you actually watch the congress people on Wednesday ask Paulson questions? Is is any wonder we are here? Most of the Congress is filled with morons and are barely qualified to drive a car let alone manage the nation. Congresswomen Maxine Waters (and i quote) "What is this thing called margin .... and why do banks charge it?"
If i were Hank Paulson and this bill was not passed i would resign on the spot, buy and island, and retire in luxury as rome burns.
I am not saying the Bill is perfect but i am saying that i have more confidence in the intellect of Hank Paulson than in all of the congress, senate and most certailnly the single worst president in the history of the United States - George W. Bush.
You get the people you vote for. Perhaps as a nation, who up until the last two weeks has been more concerned with Britney Spears, Brad Pitt and Angelina Jolie, we are as stupid as the people currently representing us.
Before blindly reacting to this how about we get smart and start picking people who can think their way out of a wet paper bag - who cares democratic or republican. How about just people with a medicome of intelligence.
Just a suggestion but anyone that tells you are economy is strong is lying to you and should not GET YOUR VOTE.
Sale of ABN Amro to ING is off. Belgian Government takes 50% in Fortis Bank Belgium for 4,5 billion. Luxemburg takes 50% stake in Fortis Bank Luxemburg for 2,5 billion. The dutch are still counting their money. Fortis as a holding remains, it's just some subsidiaries that are partly nationalised.
O, and a few billion writedowns of the CDS portfolio
BNP Paribas apparently offered 1,6 per share and wanted government guarantees. Closing price on Friday was 5,2 , an all time low. After raising capital to fund the ABN Amro takeover shares were around 22 and they've been declining ever since. The Belgian government paid 4,7 billion for their 49% stake. The other 2 countries now hold a 49% stake in the bank subsidiary of their country as well.
ABN Amro will be sold off in a couple of weeks, most likely to ING.
"[U]nder the terms of the deal, the Belgian, Dutch and Luxembourg governments will inject capital to buy 49 per cent of Fortiss banking subsidiaries in each of the three countries."
Didn't know that this is Belgium's largest bank which holds 1/2 of population's deposits!
Nemo?
I'll take the first.
As I understand this is bigger than Wamoo going under? Contained...
At least the Europeans go straight to nationalization. In the US, we have to try everything else first, and then (no big surprise) nationalize it.
Nemo is busy working on the CRVIX code...
At least the Europeans go straight to nationalization.
I think you mean "Europeanization."
This is a multinational bank.
This is the warmup for Trichet. Wait until the real game starts.
Contest!
What will the new Chinese/Japanese/Asian bloc currency be called?
Hmmmmmm.
At least the Europeans go straight to nationalization. In the US, we have to try everything else first, and then (no big surprise) nationalize it.
Someone quoted Churchill earlier in the week:
Americans can always be counted on to do the right thing, after they have exhausted all other possibilities.
What will the new Chinese/Japanese/Asian bloc currency be called?
The Dollar. But it will have Mao's picture on it.
whats the number 363 denote?
reverse head and shoulder?
What happens to the bondholders, I guess AIG is coughing up some of that $85 Billion tomorrow.
MSNBC says US senate votes on Weds
Mark-to-Market
Mark-to-Model
Mark-to-Myth
Now:
Mark-to-Hank!
Rumors so far: The Belgium government is going to inject 4.5 billion in Fortis Belgium the Luxemburg government 2.5 billion in Fortis Luxemburg.
Fortis is selling ABN Amro for 10 billion to ING.
MSNBC says US senate votes on Weds
Of which week?
more like Mark to Wank....
bondholder's are being thrown under the bus. PIMPCO got it's last big guarantee with FNM, FRE. That Bill Gross continues to not understand that is just too cute.
The coming implosion of WB will look exactly like JPM/WM. Can't say who will be the acquiree though. BAC, WFC, C or ????
Ciao
MS
I've been averaging 3 naps a weekend for the past 3 weeks trying to keep up with the news.
More from Clusterstock:
Update (1:50): Never mind the speeches from the people who aren't supporting the bailout regardless of what shape it takes. The real action is behind the scenes, and centers around Eric Cantor, the number three Republican in the House.
Cantor, who drafted the Republican insurance plan, was still voicing doubts about whether there was a deal when he appeared this morning on CNN's Late Edition.
"We are not ready to say that a deal is done," Cantor said.
Officially, Cantor is holding out because he says he hasn't seen a draft of the bill yet. But on Capitol Hill many suspect that House Republicans may still be looking for a way to vote against the bailout. A source tells us the Democrats may have overplayed their hand by giving so much credit to House Speaker Nancy Pelosi for the breakthrough. This could have alienated Cantor's cadres, who were hoping John McCain would get credit for an "improved bailout." (A side note: Cantor was closely considered as a possible running mate by John McCain.)
Fortis is selling ABN Amro for 10 billion to ING.
The market is unfreezing as we speak
Max writes:
What will the new Chinese/Japanese/Asian bloc currency be called?
The Dollar. But it will have Mao's picture on it.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Barter trade looks good going forward for some time if the federal reserve dollar's promise is no longer tenable.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Take a pill
Cantor is reviled by Dems (think of him as double-plus-good Gingrich in his hayday, or Tom Delay with a better face and more stupid mind).
I wouldn't be surprised if the Dems say that Cantor must vote for bill or no Dems will support it.
trillions and trillions
what a joke
lets just try spending the money on something use ful
Take a pill
Learn history.
So the Senate will vote Wednesday. That's an eternity in this environment.
Methinks they're delaying on purpose hoping events overtake them. the markets will now forced to consider a no-bailout scenario.
It's going to be a wild week.
Morons in the Congress want to play POLITICS with the Holy Handgrenade of Antioch?
We get the government we deserve.
Sell everything on Monday, beat the crash.
We obviously have no real economic leadership- don't call me,I won't be flying to DC to deal with this nuthouse until we get our 100 days.
Look at the Europeans, just nationalize on failure, and destroy the stupid parts. Frigging morons still refuse to admit the lack of any real regulatory scheme made this possible.
Someday thiscwar's gonna end...
Consumer is dead, Housing market is cooked. Sophisticated det instruments are a thing of the past, a global economic slowdown. Where is GDP growth going to come from over the next decade?
Max, are "We the People" considered to be an "event" in that scenario?
Where is GDP growth going to come from over the next decade?
Bankruptcy lawyers.
Learn history.
I can't, I'm sleepy. I just took a pill
Where is GDP growth going to come from over the next decade?
You forgot wars. Buy commodities.
Morons in the Congress want to play POLITICS with the Holy Handgrenade of Antioch?
It's obvious that there's no real sense of urgency for a lot of these guys. The problem is either overstated in the extreme, or they're astoundingly dense.
Probably a little of both.
"So the Senate will vote Wednesday"
... And America will vote in November.
The only problem is that there are only 399 "thinkers" on CR, the other 120000000000 are watching a grown man run with a ball.
So sad that the Belgians do not have superhero Hank Paulson to protect them.
Paulson's worth over 500 million dollars. He can almost singlehandedly bail out Belgium. And when he gets rehired by GS to oversee the 700 billion dollar boondoggle, he will be a billionaire with a year or two.
wally writes:
So sad that the Belgians do not have superhero Hank Paulson to protect them.
Give hank a little credit, he should have walked away then ..didn't.
Could've walked away now.. didn't.
Mao? Don't make china the scapegoat for all asia.
Japan killed as much chinese as the germans did the jews in the wars. They are bitter opponents and certainly won't like it.
Really five times as many as the Japanese killed 30 million Chinese during WWII era. Go to China and visit all the memorials.
Give hank a little credit, he should have walked away then ..didn't.
Could've walked away now.. didn't.
Don't be naive. Hank knew what was coming. What better way to position himself for the upcoming meltdown than to be Bush's Treasury Secretary?
Republicans are TRAITORS writes:
Paulson's worth over 500 million dollars. He can almost singlehandedly bail out Belgium. And when he gets rehired by GS to oversee the 700 billion dollar boondoggle, he will be a billionaire with a year or two.
An overstatement and pure speculation for sure.
We just need to get used to the 21st century reality that the US no longer has the economic capacity to rule the world. We probably don't even have the capacity to keep a 12 aircraft carrier fleet maintained anymore.
Key to that loss of status is the fiction that having our financial base built upon 20+% financial institutions - which produce only leveraged assets and not real economic output.
The real thing to downsize until it is small enough to drown in a bathtub is megasized banks. If they can't be small enough to drown, then we should split them up and cut off ANY federal government money support, while regulating them within an inch of their life while they are still megamonsters.
I can't wait to see you guys resolve all of the chinese/japanese bad blood here. But can you do it after we mop up the insolvency/confidence blood in progress. TIA.
An overstatement and pure speculation for sure.
I think it's an understatement. I read Hank's net worth is $900 millio
Hank knew what was coming.
Another way to look at it is he would not have taken this job if he knew it was going to blow up like this.
500 million dollars?
That's 200 right?
That's 200 right?
Only if the bailout is passed.
Another way to look at it is he would not have taken this job if he knew it was going to blow up like this.
And miss the opportunity to have his grubby paws on the wheel as Bush rode his bike?
An interesting consequence of natonalized banks in the UK (and of EU regulation):
NORTHERN ROCK is within days of being forced to stop taking savings from new customers after a rush of deposits into the nationalised bank. More than £1 billion of savings has flooded into it in the past two weeks, following the continuing chaos that has engulfed the banking sector. The government guarantees underpinning Northern Rock have been encouraging savers to move their cash.
The influx has pushed the bank close to the caps imposed by European competition laws which restrict its ability to compete with the banking industry for customer deposits.
Savers flock to Northern Rock - Times Online
Max, are "We the People" considered to be an "event" in that scenario?
No doubt about it. That's why the delay: there is real opposition to this thing, and there's no upside for Congress. Boy Who Cried Wolf * 1,000,000.
Politically, the appearance of action is the best option. If they pass the bill and it fails, they're toast. If they pass the bill and it works, people will only see the enrichment of bankster types. If they vote it down and the market crashes, they get blamed.
However, if they "work real hard," and events overtake them, both parties can avoid blame by blaming Bush and Paulson for not giving them enough time. They'll also have political cover to take action once main street starts really feeling the pain.
Each US aircraft carrier cost about $4.5 billion.
What would they bring on today's market?
Each US B-2 bomber cost about $2.2 billion? Put them on eBay.
Guestimated cost of the US missile defense system is about $30 billion. Will they ever show in a real test that it can hit a actual surprise multi-warhead missile?
Does anybody really believe that any country would attempt to invade the US, the most well-armed citizenry in the world?
They'll also have political cover to take action once main street starts really feeling the pain
As the Nazi's said as they fled Berlin to the suffering German citizens "you voted for us"
As reported by Forbes:
Henry Paulson - Wikipedia, the free encyclopedia
(Go to 9 in footnotes)
Paulson was worth 700 million. My fault I underestimated his worth.
i'm guessing that the abyss that paulson bernanke cox and bush stared into..
was one where the entire system lock stock and barrel comes down around them (us?)
they take the entire system of public and private retirement investments, municipal bonds, and all equity investments that upper middle class americans and the rich have accumulated...
and drag it down into the whirlpool along with the toxic investments.
as a principle, i dont like saving the miscreants and the pompous elite...
but we are shackled at the angle to them in a long chain, and if they are tossed overboard maybe we all get pulled down and down and then drown together.
i continue NOT to support the bailout for several reasons especially cause i see no end in sight and i doubt it will work..
but also, because the proposal courts lacks cram down authority for the courts.
Someone called in saying , they should fire hank, impeach bush and let it all fail and rebuild from the ashes.
Sounded promising.. till she said bring back greenspan.
And the cycle restarts.
Paulson was worth 700 million..
Ok, ok 259 then, damn you drive a hard bargain.
Paulson was worth 700 million
$500M is tied to the performance of GS. You think he's biased?
Intrade shows the bailout plan passage likelihood plunging to 53%.
It's not a perfect site, but it does reflect conventional wisdom pretty well. For some reason, the probability of passage has gone down notably since Saturday.
I am betting it's the clear signs from House GOP that they will rebel combined with certain careful phrasing from Pelosi. Both sides are preparing to yank support under certain circumstances.
Latest unofficial:
ABN Amro will be sold to ING.
Does anybody really believe that any country would attempt to invade the US, the most well-armed citizenry in the world?
You miss the point completely. Think vice versa.
What will the new Chinese/Japanese/Asian bloc currency be called?
'The Wang' - backed by the People's Bank of Wu Tang...
"Where is GDP growth going to come from over the next decade?
You forgot wars. Buy commodities."
Last time, the real war came about a decade into the mess.
dryfly writes:
What will the new Chinese/Japanese/Asian bloc currency be called?
'The Wang' - backed by the People's Bank of Wu Tang...
Thought Wu Tang was black.
ABN Amro will be sold to ING.
hmm and does ING have the money? i thought that they are also in peril. i mean come on, insurance company with banking? where have i heard that ...
does ING have the money
Actually it wasn't clear if ABN Abro would be sold or ceded. All this is coming from a photograph of a briefing paper carried by an offical from Fortis a little while ago.
Fortis : « Nous avons connu des erreurs » - lesoir.be
My parents have much of their life savings in Fortis. They kept an account their since they lived in Belgium decades ago and it used to be called Societe Generale. They are retired now. They keep a euro account there and a USD account. We never imagined this would happen this has been pretty scary given that Belgian deposit insurance is only 20,000 euros. We are trying to decide whether to send a fax to transfer all the money out first thing tomorrow. They also have an account a Chase and we honestly thought that would be the first to go. This is no joke when it hits for real. It is super scary. I have been sitting here all day watching twitter and waiting for news.
Off loading ABN Abro now opens the door for BNP Paribas to buy the rest of Fortis. They had been balking at having anything to with Abro.
The big problem for consumers is that Fortis offered a lot of products that were halfway between life insurance policies and savings accounts. It is not at all clear if these accounts are covered by the Belgian state.
Anounymous,
I think paulson had to sell his GS stake when he took the job. Best/luckiest investment he ever sold.
This is no longer funny... I bank at Fortis.
ABN Amro will be sold to ING.
If true, no wonder Nellie Kroes (EU Competition Commissioner) is involved in the talks. A combined ING + ABN would surely have a whopping dominant position in the Netherlands.
Well - over here in occupied Belgium, where the ratio of Japanese to Chinese tourists is about the same.
Went to a Fortis ATM to grab some euro's - cash withdrawal was "temporarily unavaiable" No queue but several other people in there too - went up the road to ING and successfully withdrew there though.
Bailout Belgium style:
http://www.nos.nl/nosjournaal/images/fortisblad_393_tcm44-423345.jpg
This "leak" of the Fortis bailout plan is amazing. I believe the guy holidng the document is Fortis CEO (appointed on Friday). Doesn't this guy have any sense or can't he afford a document wallet? Sheesh...
Protect ya neck!
Wu Tang Financial | SPIKE
There are many religions.
There are many banks.
There is, however, only one sky.
Once that's falling, we're all dead.
The global hangover from this credit crisis seems formidable. Imagine what it will be when we wake up from the current environmental destruction and resource consumption binge. Global hangover guaranteed, but no more government bailouts then...
Oh well, there's beer, chocolate, waffle's and girls with big ****
Not to bad.
Next in the news: Hypo Real Estate
For all those Paulson haters - HE HAD TO DIVEST HIMSELF OF ALL HIS STOCK IN GS PRIOR TO TAKING THE POST OF TREASURY SECRATARY. The stock is not in a blind trust it got sold in 2006.
I am going to guess tha the only thing paulson has planned for 2009 is a nice long vacation. He may stick around for a bit to help trasition.
Did any of you actually watch the congress people on Wednesday ask Paulson questions? Is is any wonder we are here? Most of the Congress is filled with morons and are barely qualified to drive a car let alone manage the nation. Congresswomen Maxine Waters (and i quote) "What is this thing called margin .... and why do banks charge it?"
If i were Hank Paulson and this bill was not passed i would resign on the spot, buy and island, and retire in luxury as rome burns.
I am not saying the Bill is perfect but i am saying that i have more confidence in the intellect of Hank Paulson than in all of the congress, senate and most certailnly the single worst president in the history of the United States - George W. Bush.
You get the people you vote for. Perhaps as a nation, who up until the last two weeks has been more concerned with Britney Spears, Brad Pitt and Angelina Jolie, we are as stupid as the people currently representing us.
Before blindly reacting to this how about we get smart and start picking people who can think their way out of a wet paper bag - who cares democratic or republican. How about just people with a medicome of intelligence.
Just a suggestion but anyone that tells you are economy is strong is lying to you and should not GET YOUR VOTE.
Sale of ABN Amro to ING is off. Belgian Government takes 50% in Fortis Bank Belgium for 4,5 billion. Luxemburg takes 50% stake in Fortis Bank Luxemburg for 2,5 billion. The dutch are still counting their money. Fortis as a holding remains, it's just some subsidiaries that are partly nationalised.
O, and a few billion writedowns of the CDS portfolio
Update: the dutch put 4 billion in.
BNP Paribas apparently offered 1,6 per share and wanted government guarantees. Closing price on Friday was 5,2 , an all time low. After raising capital to fund the ABN Amro takeover shares were around 22 and they've been declining ever since. The Belgian government paid 4,7 billion for their 49% stake. The other 2 countries now hold a 49% stake in the bank subsidiary of their country as well.
ABN Amro will be sold off in a couple of weeks, most likely to ING.
CR, Fortis is partially nationalized, according to FT.
FT.com / Financials - Fortis thrown €11.2bn lifeline
"[U]nder the terms of the deal, the Belgian, Dutch and Luxembourg governments will inject capital to buy 49 per cent of Fortiss banking subsidiaries in each of the three countries."
Didn't know that this is Belgium's largest bank which holds 1/2 of population's deposits!