Belgium's government announces it will buy the Belgian banking business of Dexia for €4B and...


Belgium's government announces it will buy the Belgian banking business of Dexia for €4B and provide 60% of the guarantees for the rest (approx. €90B) of the parent group's assets, with France and Luxembourg apparently guaranteeing the remainder. S&P futures +1%, euro +0.5% at $1.3349.

Comments (6)
  • screamin187
    , contributor
    Comments (294) | Send Message
     
    Why are bailouts good news? Do they not exemplify how desperate governments are and how dire the situation is? I do not understand how transferring debt from the private sector to government balance sheets is beneficial long term. Moral hazard is gone and history will repeat itself.
    10 Oct 2011, 01:49 AM Reply Like
  • bankingqueen
    , contributor
    Comments (133) | Send Message
     
    Better for Bankster bonuses.
    10 Oct 2011, 08:54 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9904) | Send Message
     
    Will have to wait for "expert" commentary of more exactly what this means and how it will impact the bank and the country. It might be a help, but somebody is losing something and what that is cannot be determined from these details.
    10 Oct 2011, 02:23 AM Reply Like
  • Francis Fiduk
    , contributor
    Comments (143) | Send Message
     
    Look for possible credit downgrades of anyone absorbing that bad debt. Credit downgrades = higher interest rates = more pressure on a system that has been very weak as of late.
    10 Oct 2011, 05:58 AM Reply Like
  • singmantra
    , contributor
    Comments (3) | Send Message
     
    great, now the Belgians and French taxpayers can pay the 100 B just as US taxpayers are on the hook for trillions for AIG, Freddie, Fannie, GM, Citi Bofa etc bailouts. Great way to transfer common man's savings to richest of the rich bankers.
    10 Oct 2011, 02:29 AM Reply Like
  • Dave Faulkmore
    , contributor
    Comments (84) | Send Message
     
    Unless those citizens are on drugs, all their wealth will be in Au by now. Then the system is in a conundrum. No one will be on the hook for that debt. It's just bad debt. Why would anyone lend to Belgium?!
    10 Oct 2011, 07:43 AM Reply Like
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