SNS: Dutch Court Rejects Zero Compensation Offer

In a widely reported decision that raises questions about the viability of the European Union's policy of imposing bail-ins as a condition of any future rescue package, the Amsterdam Court of Appeal's Enterprise Chamber has refused to bless the Dutch Minister of Finance's offer of zero compensation to shareholders and subordinated debtholders of SNS. The SNS Group was nationalised by Ministerial Decree on 1 February with certain junior securities being expropriated at the same time. The decision to expropriate sought to move the burden of more than €1 billion of the rescue package away from the Dutch taxpayer and on to the private sector.

The decision may have ramifications beyond the Netherlands, with many European states and banks likely to require emergency support in the coming years. Questions may also be raised as to what this might mean for the bail-in elements of the Cyprus rescue package. Some claims are already pending in connection with the EU's actions in