CNBC
30 Jun 2008
SourceAMSTERDAM (Thomson Financial) - Expectations at Fortis that the U.S. markets are on the verge of "meltdown" were behind the Benelux bank's decision last week to launch a sweeping recapitalisation programme, said chairman Maurice Lippens.
"We were saved at the last minute. Things in the U.S. are going far worse that people think," Lippens said in an interview with De Telegraaf.
Forecasting bankrupties among U.S. banks amid declining credit cover, and also citing Citigroup and General Motors as blue chip companies impacted by the turmoil, he was quoted as saying: "The U.S. is heading for complete meltdown." Fortis last week surprised shareholders with recapitalisation measures worth a total of 8.3 billion euros, including a 1.5 billion euro capital hike.
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