SNS Reaal press release and reaction

Today the NRC/Handelsblad newspaper had some news on the developments of SNS Reaal. Nothing substantial has happened yet, but because of all the rumours SNS has released press information. The relevant issues here are that SNS is considering many scenarios which would bring relief to the bank’s capital problems – and preferably solutions by private investors. But the bank explicitly states that it is not clear whether or not such a scenario is feasible.

Furthermore, the bank mentions possible increasing future losses at its property business (the main element of the bank’s problems). The editor of the Economy supplement of the NRC newspaper states that the press release hardly inspires confidence – rather the opposite. He sees it as a ‘last call to the life-boats.’

 

Meanwhile, the Dutch finance minister Jeroen Dijsselbloem has stated that the bank is a systemic bank and therefore too big to fail.

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