Belgian-Franco lender Dexia agreed to a massive government bailout and breakup on Monday after the credit markets froze out the bank due to its enormous exposure to toxic sovereign debt of countries like Greece.


Dexia said it has reached a deal to receive $121 billion in state guarantees and sell its Dexia Bank Belgium to the Belgium government for $5.4 billion. Also, the governments of Belgium, France and Luxembourg said they will provide state guarantees of up to 90 billion euros for the next decade to Dexia and its subsidiary Dexia Credit Local.

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