The nationalisation of SNS Bank by the Dutch government at the end of last week will mean losses for debt investors. SNS Bank issued both senior and subordinated Australian dollar debt in the local market between 2004 and 2006.The bank's inability to continue funding itself in wholesale debt markets prompted the Dutch government to act based on the view the bank was too important to the Dutch banking system to be allowed to fail. As a result of the taxpayer-funded rescue, shareholders, hybrid-note holders and subordinated-debt holders have all had their interests in the bank expropriated, regardless of the whether the debt instruments were Basel III compliant or not.Only senior-debt holders have not been "bailed-in".The rescue will cost to Dutch taxpayers €3.7 billion, the Financial Times reports. The government will inject €2.2 billion in new capital into the bank, while forgiving €800 million the bank still owes from its earlier bailout during the financial crisis. It will also write off €700 million of the value of the bank's real estate assets.