News Summary: SNS looking to shore up books

News Summary: Dutch bank SNS Reaal looking at share issue; asset disposals, bondholder haircut

Associated Press
Troubled Dutch bank SNS looking at share issue

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A man operates a smart phone outside a SNS bank Amsterdam, Netherlands, …

CAPITAL BUFFERS: SNS Reaal NV, the troubled Dutch banking and insurance group, is looking to strengthen its capital buffers through strategies including a possible share issue or forcing some bondholders to take losses.

REAL ESTATE HIT: The company has been struggling after being hit about €2.3 billion ($3 billion) in losses on its foreign property investments and an increasingly weak Dutch commercial real estate market.

NEEDS CASH: SNS Reaal's capital reserves, designed to protect the group from economic and financial shocks, are below levels allowed under international banking law — and it still owes the Dutch state €750 million from a bailout it received in 2008. Analysts say SNS needs roughly €2 billion in capital to regain solvency.

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