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Monday, September 29, 2008

Banks overboard

Given that Fortis, one of the 3 purchasers of ABN Amro, has now had to be partially nationalised, I wonder what would happen if the worst was to happen and the Belgian bank's fellow buyers (RBS and Santander) went to the wall.

Particularly, what would happen to the Dutch bank ABN?

Would the Governments effectively be getting a 4-for-the-price-of-3 deal when it came to buying banks? Or would ABN be cut adrift in the choppy waters of the credit crunch like a Marie Celeste ghost ship? Or, fittingly, like The Flying Dutchman...?
PS I have just read the US voted down that $700bn bail-out. It's going to be absolute carnage tomorrow. Robert Peston said this was the worst day of the credit crunch yet, I guess we'll see if that's a very short-lived title.