Friday, September 26, 2008
First European Bank (Excluding NR) to face a run
Shares in Belgian-Dutch financial group Fortis fell for a fifth consecutive day on Friday as speculation mounts about the bank's future. Fortis' shares were down 8.3% on Friday and hit a 13-year low of €5.66 (£4.48), amid worsening newsflow about the Belgo-Dutch bank. Newspaper reports from Holland suggested Fortis would have to sell off some of its core activities to raise liquidity and there were also reports of a run on branches of ABN Amro, the Dutch consumer banking operations of which Fortis purchased last year.However, ABN Amro's Netherlands head tried to quell the concerns and told De Telegraaf that there was no need for investors to worry about the bank's liquidity.