"I think this headline that Dexia has been nationalized, or there is a bailout, is absolutely wrong. What we know is, the Belgians are going to take responsibility for the Belgian citizens, the French for the French citizens; and this leaves 180 billion in US municipal lending, and another 180 billion in European municipal lending, for which no one is taking any responsibility," Phillippa Malmgren, president and founder of Principalis Asset Management, told CNBC.
CNBC's Ross Westgate reports that the Dexia Board has agreed to the rescue plan after its marathon meeting.
Europe has too many broken banks and the time has come to fix them. With Dexia's problems laid bare, it must now be apparent to even the most myopic politician that the European Banking Authority's 2011 stress tests were a complete failure, writes CNBC's Guy Johnson.
Regulators in the United States and overseas are cracking down on computerized high-speed trading that crowds today’s stock exchanges, worried that as it spreads around the globe it is making market swings worse. The New York Times reports.
The prospect of guaranteeing the debt of richer but more spendthrift countries like Greece, Portugal and even Italy has led to public outrage in tiny Slovakia, the second-poorest country in the euro zone where the average worker earns just over $1,000 a month. Now it is threatening to derail a collective European bailout . The New York Times reports.
Moody's said Friday it put Belgium's Aa1 local and foreign currency government bond ratings on review for possible downgrade.
As the French and Belgian governments race towards a second rescue for stricken financial group Dexia, fears that the Franco-Belgian group is just the first of many banks in need of aid are intensifying.
Belgium's and France's plan to guarantee the financing of struggling bank Dexia will earn them a ratings downgrade and the contagion can spread to Germany, Southwest Securities Managing Director Mark Grant warned Wednesday.
Moody’s ratings agency on Monday put Franco-Belgian financial group Dexia’s three main businesses under review for a downgrade, prompting a sharp drop in the group’s shares and further speculation that the bank may see more government aid after a first bailout in 2008.
Like Americans trying to raise quick cash by unloading their unwanted goods, the federal government is considering a novel way to reduce the deficit: holding the equivalent of a garage sale, reports the NY Times.
LONDON—Greece may never be able to pay off its huge debts, but its bonds, long scorned by investors, are suddenly being gobbled up by hedge funds. After a number of investors struck gold by betting against French banks, many have turned their attention to the hot yet risky euro zone trade of the moment: buying Greek government bonds that traders say are changing hands for as little as 36 cents for each euro of face value.
Greece may never be able to pay off its huge debts, but its bonds, long scorned by investors, are suddenly being gobbled up by hedge funds, the New York Times reports.
European leaders headed home from a weekend of meetings in Washington vowing bolder steps to address widening anxiety about the Continent’s debt burden. But it will most likely be weeks or even months before any new action comes to pass. The NYT reports.
More than 500 days of talks to form a government have seen Belgium take from Iraq the dubious honor of taking the longest time ever to form a government, prompting attacks by bond vigilantes as well as international ridicule.
Remember the collapse of Lehman Brothers ? Europeans certainly do. As Europe struggles to contain its government debt crisis, the greatest fear is that one of the Continent’s major banks may fail.
Inflation in the 17 euro countries remained steady at 2.5 percent in August, adding to expectations the European Central Bank will hold off from raising interest rates — and may even consider cutting them — as economic growth slows.
After all the market volatility in the past few weeks, and the move by four European nations to ban short selling, should US regulators ban short-selling, too? Click here to vote.
Double dip may be back. It has been three decades since the United States suffered a recession that followed on the heels of the previous one. But it could be happening again, the New York Times reports.
Let's make this quite clear: there is no need for the markets to get spooked by German Finance Minister Wolfgang Schaeuble's comments about "no carte blanche for ESFS bond buying".
Can a bailout fund whose backers include some of the countries it may be called upon to bail out really succeed? The NYT reports.