GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
760016

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Lee Doyle

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

France and Belgium take control of Dexia - Another dead bank even after three bailouts?

Posted by on in From My Window
  • Font size: Larger Smaller
  • Hits: 2046
  • 0 Comments
  • Print

 

Further help cannot be ruled out says minister as lender is handed third bailout amidst mounting losses

 

Simon Neville

The Guardian,

Thursday 8 November 2012 20.02 GMT

 

 

 
Dexia bank needs billions in new capital
Dexia bank has been given billions in new capital by France and Belgium. Photograph: Julien Warnand/EPA

Franco-Belgian bank Dexia has been given a third bailout as the repercussions of the banking crisis continue to shake the financial system four years on.

The French and Belgian governments will pay €5.5bn (£4.4bn) to take near-full control of the bank, once the world's biggest municipal lender, after it reported a nine-month loss of €2.39bn.

The institution lost €11.6bn last year due to its exposure to sovereign debt across Europe, and contributed to Belgium's credit rating being downgraded after the French and Belgian governments guaranteed €90bn of loans.

The latest bailout involves Belgium paying €2.9bn and France €2.6bn, leaving them guaranteeing 51.4% and 45.6% of the bank's debts respectively. The remaining 3% is held by Luxembourg. Belgium's finance minister, Steven Vanackere, said he could not rule out a future bailout: "Is it a total guarantee? People who give such a guarantee are unwise."

The bank is still exposed to government debts across the eurozone with €38.5bn outstanding in Italy, €24.1bn in Spain, €3.8bn in Portugal, €1.7bn in Ireland and €405m in Greece – although Greek exposure has been reduced by 74%.

The deal, agreed on Wednesday night, will give the French and Belgian governments a holding of around 94%.

The bank said it was necessary to "avoid the materialisation of a systemic risk in the case of bankruptcy of the Dexia Group".

In the bank's first bailout in 2008 it received €6bn of help from France and Belgium. Last year the bank, which provides backing for more than 40 private finance initiative projects in the UK, persuaded France and Belgium to guarantee loans worth up to €90bn, due to its €3.4bn exposure to Greek debt putting off rival banks from lending it any money. That deal was allowed on condition Dexia cut operations and sold off subsidiaries.

A sell-off of assets at a loss has hit Dexia's bottom line, with the company revealing a €599m loss on the sale of its Turkish business DenizBank and a €466m loss from selling its Dexia Municipal Agency.

Dexia Municipal Agency was sold for €8.7bn, while Russian firm Sberbank bought DenizBank for €2.8bn. Its Belgian bank was nationalised and its Luxembourg unit was sold to a Qatari consortium led by the country's royal family.

Any deal on the bailout must first be agreed by the European Commission, which is wary of raising sovereign debt. Belgian debt is already at nearly 100% of GDP. There has been tension with the commission over past bailouts, with bureaucrats citing anti-competition rules and delaying the decision.

Last year's guarantee to the bank led to credit rating agency Moody's downgrading Belgium's credit rating from AA1 to AA3 on a negative outlook.

The agency said in December that the second Dexia bailout was a main factor in its decision. It said: "There is a significant risk that the dismantling of the Dexia group, and especially the run-off process of Dexia Credit Local, will result in increases in government debt metrics, although Moody's notes that the precise extent of any increase remains highly uncertain … Moody's estimates these current exposures as representing close to 10% of the country's GDP."

Source: http://www.guardian.co.uk/business/2012/nov/08/france-belgium-dexia?CMP=twt_gu

Last modified on
Rate this blog entry:

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 02 December 2020