Dexia Bank Goes Bust ! France And Belgium ‘Guarantee’ Dexia Bank Finances!

• A major Franco-Belgium Bank: Dexia has gone bust! It is affecting other European banks, rumored to be SocGen? BNP?… ?? Most major western banks are insolvent. They have many toxic ‘assets’ that are hidden off balance sheet or marked to model/fantasy instead of market value! Got physical gold yet?
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  France and Belgium ‘guarantee’ Dexia bank finances
  By Jamie Dunkley, http://www.telegraph.co.uk/
  French and Belgian government stepped in to guarantee the finances of Dexia after shares in the troubled bank tumbled more than 37pc on talk that it will be broken up.
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  The governments, working with central banks, said they would take all measures necessary to protect Dexia’s account holders and creditors. “To this end, they pledge to guarantee financing raised by Dexia,” Francois Baroin and Didier Reynders, the countries’ finance ministers, said in a joint statement.
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  The statement made clear the aim was to protect account holders and creditors of the Franco-Belgian financial group. Dexia shares, which fell 10pc yesterday after Moody’s warned it could be downgraded, fell heavily during early trading after the company’s board urged its chief executive Pierre Mariani to fix the lender’s “structural problems”.
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  The announcement by the lender followed an emergency board meeting last night where a break-up of the bank was though to have been discussed.
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  “In the current environment, the size of the non-strategic asset portfolio impacts the group structurally,” Dexia said in a statement on Tuesday. “This is why the board of directors asked the chief executive officer, in consultation with the relevant governments and the supervisory authorities, to prepare the necessary measures to resolve the structural problems.”
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  Dexia is still labouring to resolve funding issues that led to a bailout during the 2008 financial crisis, when short-term credit dried up. At the time much of its long-term lending to public authorities was financed by short-term borrowing.
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  On top of that it has heavy exposure to Greek debt, which has weighed on the shares as markets bet that a Greek default is inevitable.
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  …. for the full article click here!

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