Dexia Bailout On Verge Of Collapse, Threatens To Take France AAA Rating Down With It

Dexia Bailout on the Verge of Collapse

Having followed the fortunes of the beleaguered Belgian bank from before it appeared on anyone's worksheets, we are hardly surprised that the EU Commission charged with confirming the good-bank / bad-bank restructuring is concerned at the deal that Belgium has with the French (and Luxembourg) government to backstop/finance Dexia's debt. Belgium's De Standaard (and two other European newspapers) today suggests the Belgians fear the EUR90bn deal is 'not feasible' as it stands (with a Belgium 60.5%, France 36.5%, and Luxembourg 3% weighting). Given the change in market conditions the commission, according to the article, is concerned at the ability of each country to finance its respective guarantee (most obviously Belgium) and therefore can renegotiate the October bailout deal.

The only solution Belgium sees that France itself the majority of The money the rest of Dexia bank needs from the French bond market gets. Belgium would be the part that France collects on behalf of our country, with guarantees covering. But the French are not designed for jumping. They believe that Belgium commits perjury. Paris itself is under great pressure. The credit agency Moody's yesterday put pressure on France once again by openly to question the sustainability of the French AAA credit rating. In addition, in the spring French presidential elections. Dexia Belgium ruin.

Dexia is listed as one of the 29 banks worldwide that is to big to fail

List of banks to big to fail

On November 4, 2011, the Financial Stability Board released a list of 29 banks worldwide that they considered to be "too big to fail". Of the list, 17 banks are based in Europe, 8 in the U.S., and the other four in Asia:[22] Bank of America Bank of China Bank of New York Mellon Banque Populaire CdE Barclays BNP Paribas Citigroup Commerzbank Credit Suisse Deutsche Bank Dexia Goldman Sachs Group Crédit Agricole HSBC ING Bank JP Morgan Chase Lloyds Banking Group Mitsubishi UFJ FG Mizuho FG Morgan Stanley Nordea Royal Bank of Scotland Santander Société Générale State Street Sumitomo Mitsui FG UBS Unicredit Group Wells Fargo

Dexia Agrees on Terms for Sales of French and Belgian Units

Rescuing Dexia has become critical to preventing contagion in the region’s banking industry. Dexia’s balance sheet, with total assets of about 518 billion euros at the end of June, is about the size of the entire banking system in Greece and larger than the combined assets of financial institutions bailed out in Ireland in the last 2 1/2 years.

DOW futures are already keyed in to this story, its currently at -109. Could be an ugly day for the markets tomorrow.

I should have posted this thread in the Aliens and UFOs section at least then maybe it would get some views.

This is as big if not bigger than the Lehman Brothers collapse.

Last bump from me, I'm off to get some sleep............

Yep, there's Dexia in the TBTF list alright. This will be interesting if the bank collapses.

reply to post by Cybermerc


It should be interesting to see how this goes down, no pun intended as I presume the clowns will perform another illegitimate bailout. I expect the countries involved will fraudulently pump up the value of these "things" called banks again to the detriment of the people they suck the bailout money from.

Cheers - Dave

All i can thing of is the song "Let the bodys hit the floor. Let the bodys hit the floor"

Its going to be a cold winter in the world this year.