dexia

The Belgian government met twice on Friday to see how it could extricate its slice of Dexia with a minimal impact on the public purse.

Dexia was one of the first European banks to seek a bail-out in 2008, but it has struggled ever since.

France and Belgium may be able to stand behind Dexia but supporting entire banking systems is beyond the capacity of many sovereigns.

One of the hardest-hit countries in Europe, it has already mounted rescues for two banks, Fortis and Dexia.

A Belgian union said about 150 out of 400 jobs were at risk over plans to dissolve the bank holding company.

That was the case of last week's rescue by four countries of the Benelux banks Dexia and Fortis.

Likewise the commission has sounded tough on Dexia, a Franco-Belgian lender, demanding that it come up with a plan early next year.

But the collapse of Dexia in October after it ran out of cash suggests that the ECB may not provide unlimited liquidity.

Meanwhile the collapse of a Franco-Belgian banking giant, Dexia, has brought home the pressing need to recapitalise Europe's banks.

Dexia is not alone. Two big banks in France, BNP Paribas and Societe Generale, have reported losses of more than one billion dollars.

The two parties together owned 35 per cent of Dexia shares, and continue to be represented on its board.

Those banks hold far more government and commercial debt than Dexia, while being exposed to the same short term funding limitations.

Belgium's central bank said people with savings with Dexia in Belgium had no reason to withdraw their money.

Dexia is struggling with vast amounts of Greek debt on its balance sheet and finding it difficult to access wholesale funding.

Dexia is a clear casualty of the eurozone's unresolved debt crisis, which has squeezed bank funding.

8 the collapse of a Franco-Belgian banking giant, Dexia, has brought home the pressing need to recapitalise Europe's banks.

Dexia's shares have been suspended since Thursday afternoon.

In another throwback, plans are afoot to create a "bad bank" for Dexia's worst assets.

The two funds have been selected as Dexia's preferred bidder, according to people familiar with the situation.

The burden of bailing out Dexia led ratings agency Moody's to warn Belgium late on Friday that its Aa1 government bond ratings may fall.

Only one large European bank, Dexia, has collapsed because of a funding shortage.

The Greek debt crisis has already severely hurt the French-Belgian bank Dexia.

Moody's said that the review was necessary because of the trouble Dexia is having with attracting financing in the wholesale markets.

The ousted chief executive of French-Belgian municipal lender Dexia SA renounced his 3. 7 million euros 'golden parachute. '

Dexia has already taken a 338 million euro loss to cover a 21 percent Greek debt discount agreed by private investors.

Other western European firms active in eastern Europe suffered during the crisis and are scaling back, for example KBC and Dexia.

Dexia, a Belgian-French bank, received a euro6. 4 billion ($9. 2 billion) government cash injection.

When the government helped to bail out Dexia, a Franco-Belgian bank, last year, he picked a former adviser, Pierre Mariani, to run it.

Taxonomic study of Dexia Meigen from China (Diptera: Tachinidae)

A NEW SPECIES OF THE GENUS DEXIA MEIGEN FROM HAINAN, CHINA (DIPTERA, TACHINIDAE)