Private banks fall under government control
Two European private banks have become possibly the first private banks to be nationalised, after the Dutch government acquired the assets of ABN Amro in Holland. The move calls into question whether other private banks could fall under government ownership in the future.
The Dutch government is buying the core Netherlands businesses of Fortis, the troubled Benelux conglomerate, for €16.8bn (£13.1bn). The operations include private banks Neuflize OBC in Paris and Delbrück Bethmann Maffei in Frankfurt.
Banque Neuflize OBC and Delbrück Bethmann Maffei were both branded under the ABN Amro name, which was acquired by a consortium led by Fortis last year.
A spokewoman at Fortis confirmed the two private banks were now fully owned by the government.
However, little has been said of the fate of the two private banks which now answer to the Dutch government - or their clients.
Ted Wilson, a wealth management analyst, said private clients would react to bank nationalisation in different ways. "At first blush, the prospect of being government-owned is extremely unappealing to wealthy clients, particularly to those with offshore funds. But on the other hand clients are seeking safe havens, and being nationalised at least could impart some sort of security while the storm is raging."
But there is some confusion of how safe the private client assets at the top banks would be since nationalisation. For example, unlike the Irish and German governments, the Dutch authorities have not said they will guarantee private deposits.
The turmoil in the world's financial markets has even led to speculation that one of Europe's largest banks the Royal Bank of Scotland, could be nationalisated. This could raise questions over ownership of Coutts, the 300-year old private bank acquired by RBS when it bought NatWest in 2000.
Wilson said: "The business line at Coutts would not be compatible with nationalisation."
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