Hundreds of emails allegedly show JPMorgan hiding bad loans, reports CNBC's Scott Cohn. The Belgian bank Dexia is suing JPMorgan.
"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.
Markets are moving on the announcement of a plan to nationalize part of troubled Franco-Belgian bank Dexia. CNBC's Ross Westgate shares the details from Brussels, Belgium. Also, CNBC's Michelle Caruso-Cabrera shares European Financial Stability Facility vote timeline.
CNBC's Ross Westgate reports that the Dexia Board has agreed to the rescue plan after its marathon meeting.
Regarding Dexia's recent nationalization, Steen Jakobsen, CIO of Saxo Bank, told CNBC, "I do not think being guaranteed by governments is any guarantee these days."
"There are certainly a couple of banks that people will consider to be in the same sort of boat as Dexia. It is essentially the ones that have large exposures to peripheral European sovereign debt and who have not written it down to any large extent. But we are not talking in the twenties or thirties, we are talking probably less than 10," Adrian Schmidt, FX strategist at Lloyds Bank Corporate Markets, told CNBC.
Sharing perspective on how powerful a rally could be based on state of the European banking system, with Art Cashin, UBS.
Executives at Franco-Belgian bank Dexia are scrambling to put forth a restructuring plan, in the face of a market onslaught, with CNBC's Mary Thompson and Steve Liesman.
European shares decline sharply, with bank stocks getting hit the worst, on news that Franco-Belgian bank, Dexia, may need to be saved due to Greek debt exposure, with CNBC's Simon Hobbs and Steve Liesman.