What is it about?
This article offers a detailed discussion of the impact that the takeover of ABN AMRO, one of the largest banks in the world in 2007, and framed by the turbulence generated by the Subprime Mortgages Crisis, had in the Latin American banking industry.
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Why is it important?
The takeover of ABN AMRO, right before the Subprime Mortgages crisis, detonated a rearrangement of the market position of Fortis, Royal Bank of Scotland and Santander in Latin America. The immediate consequences of the crisis for the former two were devastating; Santander, however, came out largely unscathed and faced an extraordinary opportunity to solidify its already strong position in Latin America.
Perspectives
This investigation documents a real life case in which an emerging strategy opened a great opportunity for Santander, as a consequence of the serious complications faced by its two partners (Royal Bank of Scotland and Fortis) in the takeover of ABN AMRO, whose Latin American assets basically ended under the control of the former bank. That was not the original idea of the alliance made by the three acquiring banks, but the Subprime Mortgages Crisis fully changed the strategic conditions and was highly favorable to Santander. The influence that this outcome had on the Latin American banking industry was long-term.
Doctor Roberto Joaquín Santillán-Salgado
Instituto Tecnologico y de Estudios Superiores de Monterrey
Read the Original
This page is a summary of: The Takeover of ABN AMRO and Its Effects on Latin American Banking, Latin American Policy, October 2013, Wiley,
DOI: 10.1111/lamp.12025.
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