The shareholders and subordinated bond holders of SNS Reaal are now fighting an alleged expropriation at the Dutch Council of State. The investors are contesting the Dutch government's position that shareholders and subordinated debt holders cannot sue for compensation against the bank due to mismanagement at SNS Reaal. Clearly, the Dutch government, as the sole owner is looking to limit its liabilities. But the bail-in will also cause problems for CDS due to the lack of a deliverable security.
As the Financial Times detailed last week, the Dutch Minister of Finance and new Eurogroup head Jeroen Disselbloem issued a decree which denies subordinated debt holders any claim for compensation in the bank-insurer's nationalisation. In essence, the Dutch government has bailed in the sub debt, pr...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.