UPDATE: friday 19 september 2008 - perhaps the dutch media report wasnt an internet rumor/hoax after all.
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UPDATE: Fortis Prediction of US Bank Meltdown a Net Hoax: The Making of an Urban Legend
by Paul Haughey
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via: the blog at the end of the world
The Financial Telegraph had a rather alarming article yesterday. It's in Dutch, but François Cellier has provided a translation.
American 'Meltdown' is the Reason for the Money Injection by Fortis
Votron stays on after a wave of criticism
by our correspondent
June 28, 2008, 09:10 a.m.
BRUSSEL/AMSTERDAM (DFT) - Fortis expects a complete breakdown of the American financial markets within days or weeks. This explains, according to the bank insurer, the series of interventions on Thursday with the aim of strengthening themselves by € 8 billion. "We are ready at the last moment. The U.S. is doing much worse than we had thought,” said Fortis chairman Maurice Lippens, who insists that CEO Votron shall not be replaced. Fortis expects bankruptcies of 6,000 U.S. banks that have low coverage. "But the same goes also for Citigroup and General Motors, and thereby starts a complete meltdown in the U.S.”
Fortis yesterday increased its capital by € 1.5 billion by means of emission of new shares. By the end of last year, the Belgian-Dutch group already had increased its capital by € 13 billion through issuing new stocks for the takeover of ABN Amro, for which they paid € 24 billion. Lippens based his concerns on talks with bankers. "Two months ago, we didn't know yet that the situation is so dire in the U.S. And the situation will further worsen. We need a thick cushion of funds to survive the next 18 months, when we bring in ABN Amro.”
Two weeks ago, the U.S. investment bank and adviser to Fortis Merrill Lynch reported that certainly € 6.2 billion in additional capital would be needed. ~ read more
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meanwhile, the president, apparently under some sort of pretext having to do with north korea, has issued an executive order declaring a national emergency:I, GEORGE W. BUSH, President of the United States of America, find that the current existence and risk of the proliferation of weapons-usable fissile material on the Korean Peninsula constitute an unusual and extraordinary threat to the national security and foreign policy of the United States, and I hereby declare a national emergency to deal with that threat. I further find that, as we deal with that threat through multilateral diplomacy, it is necessary to continue certain restrictions with respect to North Korea that would otherwise be lifted pursuant to a forthcoming proclamation that will terminate the exercise of authorities under the Trading With the Enemy Act (50 U.S.C. App. 1 et seq.) (TWEA) with respect to North Korea.
Accordingly, I hereby order: ~ read more
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