Monday, October 10, 2011

Dexia Bank Gets Massive Bailout

France, Belgium and Luxembourg are to bail out the troubled bank Dexia, following fears it could go bankrupt.

The Belgian government will buy the bank's division in Belgium for 4bn euros ($5.4bn; £3.4bn).

And Luxembourg's finance minister said a Qatari investment group was ready to buy the bank's Luxembourg unit.

Trading in Dexia's shares, which had been suspended, resumed on Monday afternoon. The price immediately fell 36% before recovering slightly.

The bailout plan for Dexia came after German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed Europe's crisis-hit banks needed to be recapitalised. Read More at BBC

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