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Belgium and France prop up Dexia - International Herald Tribune

PARIS: Dexia, a French-Belgian lender, received a capital injection of more than $9 billion from public shareholders on Tuesday as a deepening global credit crisis continued to shake European banks. Meanwhile in Ireland, the government backed all deposits in the country's banks.

After all-night negotiations, the Belgian government announced that it and other Belgian stakeholders would invest $4.26 billion in Dexia. The French government will contribute $1.42 billion, the French state-controlled Caisse des Depots $2.84 billion and the Luxembourg government $518.82 million, according to a statement from the Belgian prime minister's office.

Shares in Dexia, which had been suspended at the open, vaulted 18.1 percent to €8.45 in late morning trading.

"The market is encouraged, this restores confidence" said Georg Krijgh, an analyst at Rabo Securities in Amsterdam. "It shows the government is supporting the banks and makes Dexia one of most solvent in the region, with Fortis and KBC."

by Fran on Tue Sep 30th, 2008 at 03:21:40 PM EST
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BBC NEWS | Business | Second Belgian bank gets bail-out

Dexia has become the latest European bank to be bailed out as the deepening credit crisis shakes the banks sector.

After all-night talks the Belgian, French and Luxembourg governments said they would put in 6.4bn euros ($9bn; £5bn) to keep it afloat.

Shares in the Belgian-French bank fell 30% on Monday before being suspended on Tuesday as the bail-out was announced.

It is the second bank rescue in days by Belgium and its neighbours. On Sunday Fortis bank was partly nationalised.

This latest move by European governments to shore up another bank under pressure came as global stock markets plunged after the US House of Representatives rejected the White House's planned $700bn bail-out package.

by Fran on Tue Sep 30th, 2008 at 03:31:33 PM EST
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...appear to have done a

Midnight Runner

Come on, Eileen....!

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Oct 1st, 2008 at 08:47:54 AM EST
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