Dexia gets EUR6.4bn bailout from governments.
Global Banking News - 30 September 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
Belgo-French financial services provider Dexia (DEXI.BR) has secured a government and shareholder bailout on Tuesday as Belgium, France and Luxembourg announced plans to inject almost EUR6.4bn (USD9.24bn) to keep the business running.
'Our ambition was to have very strong political involvement in order to send a signal to the markets,' Belgian Prime Minister Yves Leterme said after reaching the deal.
Dexia, a specialist in lending to local governments, had registered huge losses in its US operations, and closed nearly 30 percent lower on Monday-triggering emergency talks with government officials. The company's American bond insurance subsidiary Financial Security Assurance had reported a net loss of USD331m in the second quarter.
Meanwhile Belgium has already partnered with Netherlands and Luxembourg to invest EUR11.2bn to rescue Belgian-Dutch financial group Fortis (FOR.BR) (AMS: FORB) (DUS: FORB) (OTC: FORSY), which suffered large credit-related write-downs.
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|Publication:||Global Banking News (GBN)|
|Date:||Sep 30, 2008|
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