Troubled financial group Fortis has admitted that past errors had triggered the crisis that forced the Benelux nations to hammer out an €11.2 billion bail-out over the weekend.
Despite assurances last week it had ample funding, Fortis was forced to turn to the Belgian, Dutch and Luxembourg governments for help late on Sunday. This came after efforts to find a foreign suitor for the banking and insurance group failed.
While blaming market 'speculation' and 'rumours' for a sharp slide in Fortis shares last week, newly appointed chief executive Filip Dierckx acknowledged that strategic mistakes also played a part in the group's woes.
'If you want me to say that there were some decisions that were not the best I will indeed confirm,' said Dierckx, who took up his post after predecessor Herman Verwilst was unexpectedly moved aside on Friday. Dierck highlighted last year's involvement in the buy-out of Dutch group ABN Amro as a key mistake.
Fortis paid €24 billion for its part in a consortium buy-out for ABN Amro at the height of the market, but by Sunday the figure of €10 billion was being mentioned as a possible selling price.
Earlier Belgian Finance Minister Didier Reynders insisted that the partial nationalisation of Fortis was only a temporary measure to support the bank.
After seeing nearly a quarter of its stock market value wiped out over the last week, shares in Fortis opened up nearly 15% today but later retreated to close down 23.7%.
Under the hastily arranged rescue, Belgium will make the biggest contribution, taking a 49% stake in the Belgian arm of the company for €4.7 billion. Governments in the Netherlands and Luxembourg will also take 49% stake in Fortis businesses in their countries.
The drama surrounding Fortis was also a sign that Europe's weakest banks were unlikely to emerge unscathed from the US-born crisis currently hitting the financial sector.
The stakes were especially high in Belgium, where Fortis is the biggest private sector employer and more than 1.5 million households, roughly half the country, bank with the group.
