29-09-2008, 04:54 AM
I think the short answer is "yes." Despite about EUR6bn of writedowns over the past year, Fortis is still carrying about EUR42bn of assets with about EUR 37bn of that in "credit spread" investments. A detailed breakdown of the balance sheet is available here: http://www.fortis.com/shareholders/media...tation.pdf. See pp 71-81 for specifics on the portfolio.
Even though it has already reserved for about 60% of its June 30 problem loans, the bank apparently must be facing massive further value errosion since this 2Q report in August. DJ Marketwatch says Euro central banks have stepped in with a EUR16bn bailout (see: http://www.marketwatch.com/news/story/ho...t=hplatest). China's Ping An (5% owner of Fortis) is also being hammered.
Even though it has already reserved for about 60% of its June 30 problem loans, the bank apparently must be facing massive further value errosion since this 2Q report in August. DJ Marketwatch says Euro central banks have stepped in with a EUR16bn bailout (see: http://www.marketwatch.com/news/story/ho...t=hplatest). China's Ping An (5% owner of Fortis) is also being hammered.