The European Commission, the EU's executive arm, has 28 more cases to review after a wave of taxpayer-funded rescues following the credit crises, Competition Commissioner Neelie Kroes said today in Brussels. The commission is forcing banks that received state aid to sell assets to prevent them from gaining an unfair advantage. Today's "decisions all demonstrate that the commission takes seriously its role as guarantor of EU state aid rules and the single market, the fair level playing field," Kroes said at a news conference. "The restructuring of the banks will ensure their long-term viability." ... Kroes last week said she wasn't a "bank destroyer" and sought to change the "arrogant" culture of banks. Her office is reviewing restructuring plans for dozens of banks, including Northern Rock Plc and Royal Bank of Scotland Group Plc.
Today's "decisions all demonstrate that the commission takes seriously its role as guarantor of EU state aid rules and the single market, the fair level playing field," Kroes said at a news conference. "The restructuring of the banks will ensure their long-term viability."
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Kroes last week said she wasn't a "bank destroyer" and sought to change the "arrogant" culture of banks. Her office is reviewing restructuring plans for dozens of banks, including Northern Rock Plc and Royal Bank of Scotland Group Plc.
Competition Commissioner Neelie Kroes said: "This plan effectively addresses the Commission's competition concerns and at the same time ensures the return of Lloyds Banking Group to long term viability. This decision once again demonstrates the important role that the EU's state aid rules play in facilitating sustainable bank restructuring whilst preventing undue distortions of competition. This is to the clear benefit of both customers and taxpayers". The Lloyds Banking Group is the entity resulting from the acquisition of HBOS by Lloyds TSB in January 2009. In 2008, HBOS was close to bankruptcy as a result of risky lending practices and high dependence on wholesale funding. In light of the systemic importance of HBOS to the UK financial system, the UK Government facilitated the takeover of HBOS by Lloyds TSB, notably by making a £17 billion (€19billion) capital injection in the bank, which gave the UK State 43.5% ownership of Lloyds Banking Group. ... The non-confidential version of the decision will be made available under the case number N428/2009 in the State Aid Register on the DG Competition website once any confidentiality issues are resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News . See also MEMO/09/507 .
Competition Commissioner Neelie Kroes said: "This plan effectively addresses the Commission's competition concerns and at the same time ensures the return of Lloyds Banking Group to long term viability. This decision once again demonstrates the important role that the EU's state aid rules play in facilitating sustainable bank restructuring whilst preventing undue distortions of competition. This is to the clear benefit of both customers and taxpayers".
The Lloyds Banking Group is the entity resulting from the acquisition of HBOS by Lloyds TSB in January 2009. In 2008, HBOS was close to bankruptcy as a result of risky lending practices and high dependence on wholesale funding. In light of the systemic importance of HBOS to the UK financial system, the UK Government facilitated the takeover of HBOS by Lloyds TSB, notably by making a £17 billion (€19billion) capital injection in the bank, which gave the UK State 43.5% ownership of Lloyds Banking Group.
The non-confidential version of the decision will be made available under the case number N428/2009 in the State Aid Register on the DG Competition website once any confidentiality issues are resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News .
See also MEMO/09/507 .
Competition Commissioner Neelie Kroes said: " I am satisfied that the Dutch authorities have adapted the terms of the illiquid asset back-up facility via an additional agreement to bring them into line with EU state aid rules. The restructuring plan is adequate to restore ING's viability, ING is financing a significant share of the restructuring costs and distortions of competition caused by the aid measures are sufficiently addressed." ... The Commission's doubts as regards the illiquid asset back-up facility have been allayed by a series of commitments made by the Dutch authorities to bring the conditions of the measure in line with the Commission guidelines (see IP/09/322 ). In particular, The Netherlands made the commitment to increase the remuneration in relation to the transaction to be paid by ING by €1.3 billion via an additional payment. ... The non-confidential version of the decision will be made available under the case number in the State Aid Register on the DG Competition website . New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News . See also MEMO/09/507 .
The Commission's doubts as regards the illiquid asset back-up facility have been allayed by a series of commitments made by the Dutch authorities to bring the conditions of the measure in line with the Commission guidelines (see IP/09/322 ). In particular, The Netherlands made the commitment to increase the remuneration in relation to the transaction to be paid by ING by €1.3 billion via an additional payment.
The non-confidential version of the decision will be made available under the case number in the State Aid Register on the DG Competition website . New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News .
Competition Commissioner Neelie Kroes said "The in-depth restructuring of KBC will restore its long-term viability and limit distortions of competition, while at the same time taking into account financial stability concerns. I am therefore satisfied that, through close cooperation with the Belgian authorities, we have managed to strike the right balance." ... KBC has received three aid measures: a recapitalisation of €3.5 billion a second recapitalisation of another €3.5 billion and an asset relief measure on a portfolio containing Collateralised Debt Obligations (CDOs). The Commission temporarily approved the first recapitalisation on 18 December 2008 (see IP/08/2033 ) and the other two measures on 30 June 2009 (see IP/09/1063) , while simultaneously opening an in-depth investigation into several aspects of the asset relief measure. The final approval of the measures was conditional upon the presentation of a restructuring plan capable of restoring the long term viability of the bank without continued state support. ... The non-confidential version of the decision will be made available under the case number C18/2009 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News . See also MEMO/09/507 .
KBC has received three aid measures:
a recapitalisation of €3.5 billion
a second recapitalisation of another €3.5 billion and
an asset relief measure on a portfolio containing Collateralised Debt Obligations (CDOs).
The Commission temporarily approved the first recapitalisation on 18 December 2008 (see IP/08/2033 ) and the other two measures on 30 June 2009 (see IP/09/1063) , while simultaneously opening an in-depth investigation into several aspects of the asset relief measure. The final approval of the measures was conditional upon the presentation of a restructuring plan capable of restoring the long term viability of the bank without continued state support.
The non-confidential version of the decision will be made available under the case number C18/2009 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News .
banning men from banking for ten years would probably do more for the world economy than anything else, pace helen... ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
