In the case of Hypo, a member of the countrys benchmark stock index, a two-part rescue will refinance €35 billion ($50.2 billion) in liabilities. German banks will be responsible for 60% of the first €14 billion in cash, but the German government will pony up the remaining €21 billion.
Fortis will take $16.1 billion from three Benelux governments and dismantle its €24.2 billion purchase of ABN Amro Bank NV assets. Fortis is scrambling to shore up investor confidence following a 35% drop in its share price last week amid concern that last year's ABN Amro deal, part of the €72 billion biggest-ever financial services takeover, overstretched it capacities.
In the U.K. the government seized embattled Bradford & Bingley, after it sold its most valuable assets to Spanish bank Banco Santander SA.
Who's next?
- Barbara Rudolph
