France, Belgium Pledge Dexia Help as Lender Weighs Breakup
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The French and Belgian governments pledged to support Dexia SA as shares of the lender plunged in Brussels on concern it will require a second government bailout.
France and Belgium will take “all necessary measures” to protect clients and will guarantee all Dexia’s loans, French Finance Minister Francois Baroin and Belgian Finance Minister Didier Reynders said in a statement today. Belgium’s cabinet will meet in Brussels tonight to review the options for the lender. Both governments have stakes in the bank following its bailout in 2008.