HUNDREDS of staff at Fortis breathed a sigh of relief yesterday when they found out their jobs were safe after an emergency £9bn rescue.
Senior members worked through the weekend to prepare staff for the news that the firm, which employs 270 people in Guernsey, has been partially taken over by the Belgian, Dutch and Luxembourg governments.
After Guernsey’s closest shave with the global fallout of the credit crunch, commercial director Rick Denton (pictured) said it was business as usual for the island.
‘Staff here have reacted very positively. We view ourselves as one of the most profitable and broadest finance companies in Guernsey and now we have the capital to continue to thrive.’
Fortis’ share price plummeted at the end of last week amid fears it could no longer afford its £19bn takeover of ABN Amro – the largest in banking history.
‘Obviously it was a shock to see our share price fall. This was nothing to do with exposure to sub-prime debts, but rather a fall in confidence in Europe’s stability after the current Wall Street problems.
‘There were concerns over the ABN Amro takeover and that had an escalating effect. Deposit holders were worried at the end of last week and were removing their money, but now they are positive the right steps have been taken.’
Their cash injection will give the governments a 49% stake in the three Fortis banks in the Benelux countries.
While Fortis might be the first big European firm to fall foul of the economic slump, it would not be the last, said Mr Denton.
‘Many other major banks will will have to take similar action.
‘We are performing well in Guernsey and have guaranteed our future stability.’
Treasury and Resources minister Charles Parkinson did not expect the island to be directly affected by the credit crunch.
‘But what the overspill effects will be remains to be seen.
‘If you predicted what has happened in the last six months, with the collapse of Lehman Bros and HBOS among many others, people would have said you were stark raving mad.’
Director general Peter Neville said that the Guernsey Financial Services Commission had kept in close contact with the overseas regulatory bodies over the weekend and welcomed the governments’ action.
Mr Denton said there would be no impact on the firm’s community work: ‘We have our budgets set and we will continue to be a major part of the community – it’s what we do.’
Article posted on 30th September, 2008 - 2.30pm
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