Multinationalisation

The French and Belgian governments did what it took to rescue Dexia., the municipal financing bank that got into trouble over its US bond insurer FSA. What it took, as in the case of Fortis the day before, was a de facto multi-player nationalisation of the bank. The question now is what the governments will do with Dexia. Most of the E6.4bn capital injection will be taxpayers’ money in one way or another. The French and Belgian state budgets will contribute E1bn each, and Belgium’s three regi...