Our politicians have made this economic crisis seem like a national problem, but reports coming in from overseas are showing that it is an international problem. The financial markets tried to create a new tool to manage investments in debt that was bad.

And that tool failed, it happens and now we are paying for it. But this problem is a world wide one, not limited to the United States.

European governments have today come to the rescue of Fortis, Bradford & Bingley and Hypo Real Estate as credit conditions continue to devastate the banking sector.

The governments of Belgium, Luxembourg and the Netherlands have stepped in to inject €11.2bn into Fortis after the banking and insurance group’s share price plunged in recent days.

Belgium has agreed to invest €4.7bn in the Belgian-Dutch group, while the governments of the Netherlands and Luxembourg are to spend €4.0bn and €2.5bn, respectively, in the bank’s units in those countries.

As part of the deal, which was coordinated by the three countries and European Central Bank chief Jean-Claude Trichet, chairman Maurice Lippens is to step down. The new chairman will be recruited from outside the company in consultation with the Belgian government.

“The actions taken by the Belgian, Luxembourg and Dutch governments are a sign of confidence in Fortis and of comfort to customers and all other stakeholders alike,” said Fortis chief executive elect Filip Dierckx.

“These actions ensure the financial strength and stability of our company going forward,” he added.

Governments rescue Fortis, Hypo Real Estate and B&B.

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