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.
CNBC's Ross Westgate reports that the Dexia Board has agreed to the rescue plan after its marathon meeting.
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.