The central bank of Holland might soon be able to take over troubled financial companies, and sell their shares, assets or liabilities without shareholder approval. Bloomberg says the Dutch Finance Minister is preparing a draft bill, which would provide an alternative to the “financial reorganization option” in the emergency procedure, which has “proven ineffective” according to central bank governor Nout Wellink.
“The recent financial crisis has revealed significant weaknesses in the framework,” De Jager wrote in a letter to parliament in The Hague today. “The improvement of the framework for crisis management has a high priority for me.”
The Dutch central bank, led by Nout Wellink, is in favor of the proposed changes, which would allow it to take control of a troubled financial company and transfer shares, assets or liabilities to another firm or the government without approval from a general meeting of shareholders.