Tuesday, October 04, 2011


At least it's not ours, but I imagine the Fed will give it some free money anyway.

PARIS/LUXEMBOURG, Oct 4 (Reuters) - France and Belgium will guarantee the financing of stricken bank Dexia , finance ministers pledged on Tuesday as officials scrambled towards a rescue that will most likely involve a break-up.

Saving institutions is fine as long as you show up to the floor where top executives are and have the police escort them out of the building as your are doing the saving. Also, too, shareholders should eat it (usually). But our Galtian Overlords must keep the exalted positions, because it's all the fault of Barney Frank and the CRA which forced Dexia to lend to Greece. Or something.

Heckuva job, world leaders (.pdf).

2011 EU-wide stress test results: no need for Dexia to raise additional capital
Dexia was subject to the 2011 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the National Bank of Belgium, the European Central Bank (ECB), the European Commission (EC) and the European Systemic Risk Board (ESRB).
Dexia notes the announcements made today by the EBA and the National Bank of Belgium on the EU-wide stress test and fully acknowledges the outcomes of this exercise.
The EU-wide stress test, carried out across 91 banks covering over 65% of the EU banking system total assets, seeks to assess the resilience of European banks to severe shocks and their specific solvency to hypothetical stress events under certain restrictive conditions.