The Fortis Files: Belgium’s Top Bank Faces the Subprime Debacle (2009) documents the devaluation of the institution’s capital position. Overestimation of the bank's liquidity resulted in market vulnerability; further crippling the institution when the U.S. mortgage crisis sent shock waves around the globe in 2007.
The history of Belgium’ Fortis top bank reveals how the risks of the subprime mortgage crisis of 2008 in Europe rocked major institutions into default. While some postured that the ambitious takeover of competitor, Dutch ABN-Amro bank was the turning point in the otherwise solid reputation of Fortis, the admission that the institution had invested too heavily in CDOs (Collateralized Debt Obligations), a product traditional associated with low risk effects, as now the source of peril.
Later purchased by BNP Paribas, the wholly owned subsidiary Fortis has recuperated from an attempted takeover by ABN-AMRO during the crisis which led to sale of the Luxembourg and Netherland holdings of the entity. The € 4.7 billion bailout by the Belgian government served as an intermediary just prior to the transfer of the former financial institution to the French banking entity.
Today, the institution maintains its credibility as the largest bank in Belgium, offering full-service financial investment products to public, private and corporate clients. BNP Paribas Fortis services include: Corporate and Public Banking, Corporate and Investment Banking, Investment Solutions, and Retail and Private Banking accounts through its offices in eighty countries.The Fortis Files: Belgium’s Top Bank Faces the Subprime Debacle
- ISBN 978-1-61753-190-3
- Run Time (45 Minutes)
- Copyright 2009
- Closed Captioned (CC)