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Belgium, European Union, Netherlands, United Kingdom
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November 18 2009
Today, the European Commission (EC) announced decisions regarding state aid for KBC Group NV (KBC), ING Groep NV (ING) and Lloyds Banking Group (Lloyds), which will "secure their long term viability," "require each of these banks to contribute substantially to the financing of their restructuring," and "ensure that none of these banks will enjoy an unfair competitive advantage as a result of the very large-scale public support they have received."
Today KBC Group NV (KBC), in connection with its 2009 first quarter earnings, announced that Belgium has agreed to guarantee up to 14.4 billion of counterparty risk insured by MBIA and 5.5 billion of KBC's super-senior collateralized debt obligation portfolio, following significant impairment write-downs mainly associated with the possibility that MBIA will default and that KBC "will have to bear the cost of any insured losses itself."
Today, in what appears to be one of last chapters in the Fortis saga, the European Commission (EC) has approved the additional aid measures provided by Belgium as part of the recent Fortis SANV and Fortis N.V. shareholder-approved amendments to the agreements between Fortis Holding, BNP Paribas (BNP), Fortis Bank and Belgium over the partial breakup of Fortis Holding
