Fortis Bank Nederland

Fortis Bank Nederland was a Dutch banking holding company and operating brand within the Belgian-Dutch Fortis group. It gathered the Dutch banking businesses that Fortis controlled or acquired, including activities associated with commercial finance, private banking and trust services. The entity was therefore not simply a standalone new retail bank: it served as the Dutch banking vehicle through which Fortis organized a broad portfolio of financial businesses in the Netherlands. Its history was closely tied to Fortis's expansion strategy and the subsequent European banking crisis. Fortis had built a substantial presence in the Benelux, and the Dutch holding represented the group's Dutch banking interests. During the financial turmoil of 2008, Fortis faced severe liquidity and confidence pressures. In September 2008, the Dutch government initially planned to invest €4 billion in Fortis Bank Nederland in exchange for an approximately 50% stake through newly issued shares. That arrangement was abandoned within roughly a week as the situation deteriorated. The Dutch state instead acquired the Dutch parts of Fortis for €16.8 billion. Fortis Bank Nederland was valued at €5 billion in that transaction. The bank also became associated with the collapse of Bernard Madoff's investment operation. Fortis Bank Nederland reported losses of approximately €1 billion connected with the Madoff investment scandal. The exposure added to the institution's difficulties and became one of the most prominent post-crisis events associated with the brand. In March 2009, the bank reported an operational profit of €0.6 billion for 2008, although that figure excluded substantial write-offs. The distinction illustrated the difference between the bank's underlying operating result and the exceptional losses and impairments generated by the financial crisis and related exposures. Following the Dutch state's takeover, Fortis Bank Nederland was folded into the restructuring of ABN AMRO. The government combined the Dutch banking businesses into a new ABN AMRO structure and disposed of or separated certain activities. Integration began in February 2010 and was officially completed on 1 July 2010. At that point, the Fortis name ceased to be used for the Dutch banking operation. The brand is consequently a historical, defunct banking brand rather than a current competitor in the Dutch financial-services market. Businesses associated with the former Dutch Fortis portfolio included Fortis Commercial Finance, the private bank MeesPierson, Finodis and the trust-services business formerly known as Fortis Intertrust, which later operated as Intertrust Group. The portfolio covered corporate and commercial finance, private banking and fiduciary or trust services, in addition to broader banking activities. Because the entity was absorbed into ABN AMRO, its institutional legacy is best understood through the Dutch banking operations transferred during the 2008 state intervention and the 2010 integration rather than through an ongoing independent product strategy.

Fortis Bank Nederland (Holding) N.V. was established within Fortis Group as the holding structure for the Dutch banking businesses assembled or acquired by the group. Fortis was a major Belgian-Dutch financial group with banking and insurance interests across the Benelux. In the Netherlands, the Fortis platform included conventional banking activities as well as specialist businesses such as commercial finance, private banking and trust services. Its associated businesses included Fortis Commercial Finance, Finodis, MeesPierson and Fortis Intertrust, the latter subsequently known as Intertrust Group. The entity's development was overtaken by the financial crisis of 2008. Fortis experienced intense liquidity and solvency pressure as market confidence weakened. In September 2008, the Dutch government proposed investing €4 billion in Fortis Bank Nederland in return for an approximately 50% stake created through new shares. The proposed arrangement was short-lived. Within about a week, the government cancelled the investment plan and instead took over all of the Dutch parts of Fortis. The total consideration for the Dutch operations was €16.8 billion, while Fortis Bank Nederland itself was valued at €5 billion in the takeover. The bank subsequently attracted attention because of its exposure to Bernard Madoff's investment fraud. Its Madoff-related loss was reported at approximately €1 billion, making the episode a major event in the institution's late history. In March 2009, the bank stated that it had generated an operational profit of €0.6 billion during 2008. That measure did not include the very substantial write-offs associated with the crisis and other losses, so it did not represent an absence of financial damage. After the Dutch state takeover, the former Fortis banking operations were reorganized with the Dutch activities of ABN AMRO. Fortis Bank Nederland was integrated into the new ABN AMRO in February 2010, while some activities were sold or otherwise separated as part of the restructuring. The integration was formally completed on 1 July 2010. The Fortis name then disappeared from the Dutch banking operation, making Fortis Bank Nederland a defunct historical brand rather than an active bank. Its legacy lies in the consolidation of Fortis's Dutch banking businesses, the state's intervention during the European banking crisis, the Madoff-related loss and the subsequent creation of a reorganized ABN AMRO platform. The entity should not be confused with BNP Paribas Fortis, the separate Belgian banking business that continued under the Fortis name after the broader group restructuring.

• 2010

  Integration into ABN AMRO completed

  [1]Fortis Bank Nederlanden.wikipedia.org

  The integration of Fortis Bank Nederland into the new ABN AMRO was formally completed on 1 July, ending the Fortis name in the Dutch banking operation.

• 2009

  Operational result for 2008 reported

  [1]Fortis Bank Nederlanden.wikipedia.org

  Fortis Bank Nederland reported an operational profit of €0.6 billion for 2008, excluding substantial write-offs.

• 2008

  Dutch government proposes a minority investment

  [1]Fortis Bank Nederlanden.wikipedia.org

  The Dutch government initially planned to invest €4 billion in Fortis Bank Nederland for an approximately 50% interest through newly issued shares.

• 2008

  Dutch state takeover of Fortis's Dutch businesses

  [1]Fortis Bank Nederlanden.wikipedia.org

  The initial investment plan was cancelled and the Dutch government acquired the Dutch parts of Fortis for €16.8 billion; Fortis Bank Nederland was valued at €5 billion.

• 2008

  Madoff-related loss disclosed

  [1]Fortis Bank Nederlanden.wikipedia.org

  The bank became associated with an approximately €1 billion loss connected with the Madoff investment scandal.

A Dutch banking platform within the Fortis group, combining mainstream banking with commercial finance, private banking and trust-services businesses.

• Banking

  Retail and commercial banking

  The Dutch Fortis platform provided general banking services to individuals and businesses. The available reference material does not specify a complete product catalogue, but the holding's role covered the principal Dutch banking operations transferred to the state and later integrated into ABN AMRO.

• Commercial finance

  Fortis Commercial Finance

  Fortis Commercial Finance was an associated specialist business focused on commercial-finance activities. It formed part of the broader set of Dutch Fortis businesses held or organized under Fortis Bank Nederland.

• Private banking

  MeesPierson

  MeesPierson was the private-banking business associated with the Dutch Fortis portfolio. Its role was to serve private-banking clients within the group's specialist financial-services offering.

• Trust and fiduciary services

  Fortis Intertrust

  Fortis Intertrust was the former name of the trust-services business later known as Intertrust Group. It provided fiduciary and corporate-services activities alongside Fortis's banking operations.

• 2008

  Madoff investment scandal exposure

  Fortis Bank Nederland was reported to have lost approximately €1 billion through exposure to Bernard Madoff's investment fraud. The loss became one of the most prominent scandal-related events associated with the bank before its absorption into ABN AMRO.

  Source

Read more

• 2010

  Integration into ABN AMROM&A

  Background

  Following the Dutch government's acquisition of Fortis's Dutch banking activities, the businesses had to be reorganized within a state-controlled banking structure.

  Action taken

  Fortis Bank Nederland was integrated into the new ABN AMRO beginning in February 2010. Some parts of the former portfolio were sold or separated, and the integration was formally completed on 1 July 2010.

  Aftermath

  The Fortis name ended in the Dutch banking operation and Fortis Bank Nederland ceased to operate as an independent brand.

  Source

• 2008

  Dutch state replaces proposed investment with takeoverOther

  Background

  Fortis's financial position deteriorated sharply during the 2008 banking crisis. The Dutch government initially considered a €4 billion investment for an approximately 50% stake in Fortis Bank Nederland, but that arrangement was abandoned within about a week.

  Action taken

  The Dutch state acquired the Dutch parts of Fortis for €16.8 billion. Fortis Bank Nederland was valued at €5 billion as part of the transaction.

  Aftermath

  The takeover removed the Dutch banking operations from Fortis Group ownership and laid the foundation for their later integration into ABN AMRO.

  Transaction value for Dutch Fortis operations. €16.8 billion (2008)

  Source

1. 1Fortis Bank Nederlanden.wikipedia.org