EC Approves ABN Restructuring Plan

The European Union has approved a support package restructuring plan for the newly created ABN Amro Group, subject to “certain conditions designed to consolidate the viability of the group.” After reviewing the proposed changes, the EC declared that “the total aid package is in line with [European Union] rules that allow aid to remedy a serious disturbance in a member’s state economy.” The commission had found that unlike other cases, the firm’s need for support “did not stem primarily from excessive risk taking or unsuitable business models,” but from separation from its parent company, which left it undercapitalized. The firm was formed by a merger of Fortis Bank Nederland and ABN Amro Bank’s Dutch activities.

Click here to read the release from the European Commission.