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Fortis Luxembourg and Bradford and Bingley IOM are the first offshore bank bailouts
By admin | September 30, 2008
In the US, Wachovia went down today. National City is headed south too. Oddly, the USD increased against the EUR.
The British Chancellor stated that the taxpayers will not have to pay the “entire” cost of the bankruptcy of Bradford and Bingley. Interesting, and perhaps reassuring, to note that their Isle of Man operations were also bailed out by the UK taxpayer.
Hypo stayed on in there to fight for another day. More details of the Fortis bailout by the governments of Netherlands, Belgium and Luxembourg emerged. Fortis have major operations in Luxembourg (the former Banque Generale du Luxembourg or BGL, where I used to open accounts for clients years ago…) so this may rank as the first major “offshore” bank failure. Most likely not the last.
Gold shot up again today. Again, not unexpected. I repeat my advice to buy physical gold bullion coins if possible.
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Topics: Cautionary tales and real cases | No Comments »
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