Belgian authorities are investigating whether executives at banking and insurance group Fortis misled investors during a capital increase last year, Brussels prosecutors said Tuesday. "Inexact information was given about Fortis' solvency and liquidity with the aim of manipulating markets during a capital increase in September and October 2007," said prosecution spokesman Jose Colpin.
"The investigation should identify people who may be responsible for wrongdoing," he added. A civil case was filed on October 10, according to the prosecution. Belgian newspapers De Tijd and l'Echo reported that the person who filed the case was a Fortis insider who had concrete information and emails.
Flemish Socialist lawmaker Renaat Landuyt called on the government to join the civil case, arguing that "if there's been fraud then Fortis' management has enormous responsibilities for the losses suffered by thousands of Belgians." Hit hard by the financial crisis, Fortis was dismantled by the Belgian, Dutch and Luxembourg governments earlier this month after they had previously tried to keep the group afloat.
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