Prosecutors seek trial of ex-Fortis directors

Belgian prosecutors have concluded that seven former directors of Fortis should face trial for allegedly misleading investors during the Belgian-Dutch bank’s purchase of part of Dutch lender ABN AMRO and before its 2008 collapse, writes Reuters’ Philip Blenkinsop. A dossier has been passed to a panel of judges who will determine whether to order a trial, Brussels prosecutors said yesterday. They did not name those involved. Ageas, the legal successor to Fortis, said it was pleased that the prosecutors were not seeking to bring it to trial but declined to comment on its former directors. The allegations revolve around whether communications to investors about Fortis’s exposure to US sub-prime assets were insufficient or too late, for example at the time of a capital increase when Fortis bought part of ABN AMRO. The seven would be the first in Belgium to face trial over banking failures during the crisis, which also forced bailouts for Franco-Belgian group Dexia and Belgian company KBC. Fortis, once one of Europe’s largest banks, got into trouble after paying a top-of-the-market €24 billion to buy the Dutch operations of ABN AMRO just before the credit crunch.