On Friday 1 February 2013 the Dutch State nationalized the SNS Reaal bank and insurance group by expropriating shares, core tier 1 securities and other subordinated debts issued by the SNS Reaal group (some of which are listed on Euronext Amsterdam). This nationalization, which is combined with additional capital injections and write-offs on earlier capital injections from the Dutch State, aims to save the SNS Reaal group from insolvency and thus safeguard the stability of the Dutch financial system. According to the Dutch Minister of Finance, the measures taken are required to resolve the capital deficiencies caused by losses on SNS Property Finance's real estate portfolio. SNS Bank is the fourth largest bank of the Netherlands.

By nationalizing the SNS Reaal group, the Dutch Minister of Finance has for the first time used its powers under the Dutch Intervention Act. The Dutch Intervention Act entered into force on 13 June 2012, with retro-active effect as of 20 January 2012. It introduced far-reaching intervention powers for both the Dutch Central Bank (DNB) and the Dutch Minister of Finance with respect to financial institutions. It also contains statutory restrictions for counterparties on exercising contractual rights triggered by such intervention measures or related events (such as close-out following an event of default triggered by intervention measures). These restrictions apply to counterparties of the financial institution's affiliates as well. Further information on the Dutch Intervention Act is given in our newsletter of 28 June 2012.