Belgian bank Dexia posts $8.74-billion Q3 loss
by The Canadian Press
Dexia, the Franco-Belgian bank that was bailed out last month, said the fire sale of its Belgian retail business and losses on Greek government bonds cost it almost US$8.74 billion in the third quarter.
BRUSSELS, Belgium—Dexia, the Franco-Belgian bank that was bailed out last month, said the fire sale of its Belgian retail business and losses on Greek government bonds cost it almost US$8.74 billion in the third quarter.
Dexia SA was the first major European bank to need a bailout in 2011 as concerns over the sovereign debt crisis escalated and other banks stopped lending it money.
In addition to getting $4 billion from Belgium for Dexia Bank Belgium, Dexia was also promised some $90 billion in guarantees for its debts from Belgium, France and Luxembourg. The business arm dedicated to lending to French municipalities, meanwhile, was taken over by French banks Caisse des Depots and La Banque Postale.
Dexia, which is more reliant on short-term financing than many other banks, already had to be rescued to the tune of $6 billion in the bailout frenzy of 2008.
Dexia did not provide an overall net loss figure for the third quarter since it’s in the middle of being split up. However, CEO Pierre Mariani said the bank was likely to record a net loss of more than $10.5 billion for the first nine months of the year, since the bank already lost more than $4 billion in the second quarter.
The bank also detailed its $13.61-billion exposure to other struggling European countries, led by a massive $10 billion exposure to Italy, and $1.84 billion in lending to Portugal.
