What will happen to the accounts of regular customers if Fortis goes under?
I live in Belgium and Fortis is both my bank and that of my folks. If you know anything of the politics in this country you will understand why I have no faith in our government to fix things. If Fortis goes under, what will happen to regular customers like my parents and me. My folks have mostly their current account, savings and portfolio, I have my current account, savings and a small loan. I'm worried we'll end up with nothing. Can anyone explain?
Corporations - 2 Answers
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Answer 1 :
Under Dutch and Belgian law, only the first 20,000 euros ($29,000) in bank accounts are insured. But i thought i had read that the Belgium Government had said with regard to fortis they would guarantee all savings 100% to stop a run on the bank.
Answer 2 :
UK reply. Understand about not trusting ANY Government! Ours is just as useless as yours! However I thought the Belgium Governemnt had agreed to nationalise it, but I assume at the same time they are trying to sell to another bank? The same as as happened in the UK with Northern Rock, HBOS and Bradford & Bingley. I don't think any Government can afford to let a bank with retail accounts go bust. This would result in everyone going to their bank asking for their money back which no bank can do as they do not literally have enough "cash" to pay out. So far no consumer has lost any savings (shareholders of banks yes, but that is different) in any country. So don't be too worried. You don't appear to be a bank shareholder, if you are be prepared to write that money off! By the way if the bank did go bust (as I say very unlikely) you would lose your savings but your loan will still remain payable to the bank's new owner!
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