Article: Embattled lender Fortis temporarily 'nationalised' by Dutch government

THE DUTCH government is buying the core Netherlands businesses of Fortis, the embattled Benelux lender, for 16.8bn (13.1bn) to prevent instability at the bank threatening the country's economy.

The move came only a few days after the governments of the Netherlands, Belgium and Luxembourg had agreed a part- nationalisation deal to buy minority stakes in Fortis's banking businesses to restore investor confidence in Fortis.

Jan Peter Balkenende, the Dutch prime minister, said yesterday that "further steps proved necessary" to safeguard the Dutch operations. "Most problems lay in the Belgian part of Fortis. We wanted to make sure the Dutch activities wouldn't get into problems," he added.

The ...

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