Reaal problems

24 January 2013 By George Hay Follow @gfhay

SNS Reaal is running out of road to address big property loan losses. That gives the Dutch government a chance to try out its new bank intervention powers. These should help, but the Netherlands will struggle to achieve the holy grail of bailouts: one that wouldn’t punish taxpayers.

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A nationalisation of Dutch bancassurer SNS Reaal is “a serious option”, De Telegraaf newspaper reported on Jan. 23 without naming sources.
The country’s fourth biggest lender is suffering from large losses on its property exposure, and also needs to repay 750 million euros in bailout cash to the Dutch government by the end of 2013.
SNS Reaal is looking at several scenarios with several stakeholders, and no decision has been taken as yet, a spokesperson told Reuters.
SNS Reaal shares fell 11.7 percent on Jan. 23 and a further 8 pct to 0.71 euros on Jan. 24.

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