After receiving a bailout of €750 million in 2008, SNS Reaal was thought to be profitable but its capital limits left it below legal solvency amounts, forcing the Dutch state to take a stake in the troubled financial concern.

The Netherlands’ Finance Minister Jeroen Dijsselbloem said the move was to insure financial stability, especially after the bank weathered heavy losses in its property portfolio.

A previous attempt by SNS Reaal’s competitors, ABN Amro, ING and Rabobank, to inject capital into the flailing institution was blocked by the European Commission because ABN and ING had received state bailout funds as well.

[BBC]