BRUSSELS, Dec 17 (Reuters) - Pressure mounted on Belgian Prime Minister Yves Leterme on Wednesday over his handling of the state-led dismantling of stricken financial group Fortis after a court last week ordered the process be frozen.
Governing parties agreed in a rowdy parliamentary session to launch an investigation into the government's response to the financial crisis, notably its role in the break-up of Fortis, with the establishment of a special commission.
Fortis was carved up in October by the Dutch, Luxembourg and Belgian governments, the latter selling Fortis assets to French bank BNP Paribas after an 11.2 billion euro cash injection a week earlier had failed to calm nervous investors.
However, the Brussels appeal court surprisingly froze the transactions for 65 days and ordered that angry shareholders should be allowed a say.
The Fortis saga is gradually taking on the air of a political or legal thriller with accusations of manipulation and intimidation flying about and little people, in this case shareholders, seen as winning a battle against the state.
Leterme insisted in parliament that he had not tried to influence the court's handling of the Fortis case. However, he acknowledged one of his officials had several times contacted the husband of one of the appeal court judges.
The liberal Open VLD party expressed concern, insisting that the separation of powers had to be respected and that Leterme's letter had raised many questions.
Opposition parties called for Leterme to go.
'It's not going to be easy with, on the one side, a legal process and, on the other, a parliamentary investigation,' Finance Minister Didier Reynders said.
Apart from the shock decision itself, there is also controversy over how the appeal court reached its verdict.
One of the three judges complained that she was put under intolerable pressure by colleagues to sign the ruling. She was officially off sick. She is now the subject of disciplinary proceedings.
'The judicial institutions regret what has happened,' Ghislain Londers, the head of the Supreme Court, told a news conference on Wednesday evening. 'This is not the sort of thing that will reinforce the public's belief in justice.'
(Reporting by Philip Blenkinsop; Editing by Gary Hill) Keywords: BELGIUM FORTIS/ (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Governing parties agreed in a rowdy parliamentary session to launch an investigation into the government's response to the financial crisis, notably its role in the break-up of Fortis, with the establishment of a special commission.
Fortis was carved up in October by the Dutch, Luxembourg and Belgian governments, the latter selling Fortis assets to French bank BNP Paribas after an 11.2 billion euro cash injection a week earlier had failed to calm nervous investors.
However, the Brussels appeal court surprisingly froze the transactions for 65 days and ordered that angry shareholders should be allowed a say.
The Fortis saga is gradually taking on the air of a political or legal thriller with accusations of manipulation and intimidation flying about and little people, in this case shareholders, seen as winning a battle against the state.
Leterme insisted in parliament that he had not tried to influence the court's handling of the Fortis case. However, he acknowledged one of his officials had several times contacted the husband of one of the appeal court judges.
The liberal Open VLD party expressed concern, insisting that the separation of powers had to be respected and that Leterme's letter had raised many questions.
Opposition parties called for Leterme to go.
'It's not going to be easy with, on the one side, a legal process and, on the other, a parliamentary investigation,' Finance Minister Didier Reynders said.
Apart from the shock decision itself, there is also controversy over how the appeal court reached its verdict.
One of the three judges complained that she was put under intolerable pressure by colleagues to sign the ruling. She was officially off sick. She is now the subject of disciplinary proceedings.
'The judicial institutions regret what has happened,' Ghislain Londers, the head of the Supreme Court, told a news conference on Wednesday evening. 'This is not the sort of thing that will reinforce the public's belief in justice.'
(Reporting by Philip Blenkinsop; Editing by Gary Hill) Keywords: BELGIUM FORTIS/ (philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.