SNS Reaal Nationalized: First-Time Application Of The Dutch Intervention Act

On Friday 1 February 2013 the Dutch State nationalized the SNS Reaal bank and insurance group by expropriating shares, core tier 1 securities and other subordinated debts issued by the SNS Reaal group (some of which are listed on Euronext Amsterdam). This nationalization, which is combined with additional capital injections and write-offs on earlier capital injections from the Dutch State, aims to save the SNS Reaal group from insolvency and thus safeguard the stability of the Dutch financial system. According to the Dutch Minister of Finance, the measures taken are required to resolve the capital deficiencies caused by losses on SNS Property Finance's real estate portfolio. SNS Bank is the fourth largest bank of the Netherlands.