The 1966 marriage between Crédit local de France and Crédit Communal de Belgique predicted a leading European group in lending to local authorities. The union was even beyond all expectations since DEXIA has since become the world’s number one.
Nothing could then predict the crisis that shakes the Bank today.
Paradoxically, the rescue of the institution would come from the reverse mechanism namely a dismantling of its activities, the only solution according to the leaders to save what can still be.
The planned decommissioning plan
As the first step in a long process, the retail banking operations grouped within DBB (DEXIA BANK BELGIUM) will be nationalized. This decision is also a strong signal to reassure the Belgian population and tell him that the money deposited in bank accounts could remain safe, which has not prevented the massive withdrawals in recent days, according to the Managing Director of the bank.
The French loan activity for local authorities, for its part, could be resold to a pool made up of the Caisse de Dépôts et Consignations and the Banque Postale.
The other branches of the group would be resold elsewhere. We even talk about the interest of Qatar investors for the Luxembourg subsidiary.
Are we done with “toxic” placements?
The financial crisis does not finish to make victims with each time the same origin. ” Subprime ” or high-risk investments seem to have attracted not only the vast majority of banks, but also states and local governments. One can without playing the sooths predict other victims and not only among the banks.
We have not finished hearing about toxic borrowing and the consequences of this “financial evil” probably ended up bringing a lot of disasters.