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Dexia
Dexia N.V./S.A., or the Dexia Group, is a Franco-Belgian financial institution formed in 1996. At its peak in 2010, it had about 35,200 members of staff and a core shareholders' equity of €19.2 billion.
In 2008, the bank entered severe financial difficulties and received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis. Due to big losses, suffered among others from the debt haircut on Greek government bonds, its Common Equity Tier 1 (CET1) capital ratio became negative during the second half of 2011,[citation needed] and an orderly resolution process began in October 2011.
As part of the resolution, Dexia Bank Belgium was bought out from the Dexia group by the Belgian state and has continued to operate, since March 2012 under the new name Belfius. The French bank focused on local government lending was restructured as SFIL. The remaining part of the Dexia group was left in a "bad bank", still called Dexia, to be gradually wound down.
In the 2010 Fortune Global 500 (which lists companies by total income) Dexia was ranked 49th, the top-ranked Belgian company.
The company was founded in 1996 through the merger of Crédit Communal de Belgique (founded in 1860) and Crédit Local de France (founded in 1987). The Dexia Group was founded as a dual-listed company, but in 1999 the Belgian entity took over the French entity to form one company. The company is headquartered in Brussels, Belgium. France and Belgium just injected another combined €5.5 billion ($7 billion) into Dexia.
On 29 September 2008, Dexia came under pressure due to the 2008 financial crisis. Other banks and financial institutions refused to provide further credit to Dexia because of potential losses at its U.S. subsidiary FSA and from a multi-billion loan to troubled German bank Depfa. The price of the Dexia share, having peaked above €20 in the previous years, but gradually fallen to around €10, dropped in one day to €6.62.
The next day the rating agency Moody's downgraded Dexia's long term debt and deposits ratings from Aa1 to Aa3, and downgraded the individual banks' strengths to C− ("adequate intrinsic financial strength") with a negative outlook.
Dexia was quickly forced to apply for a taxpayer bailout. This support was assured within days, taking two forms:
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Dexia
Dexia N.V./S.A., or the Dexia Group, is a Franco-Belgian financial institution formed in 1996. At its peak in 2010, it had about 35,200 members of staff and a core shareholders' equity of €19.2 billion.
In 2008, the bank entered severe financial difficulties and received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis. Due to big losses, suffered among others from the debt haircut on Greek government bonds, its Common Equity Tier 1 (CET1) capital ratio became negative during the second half of 2011,[citation needed] and an orderly resolution process began in October 2011.
As part of the resolution, Dexia Bank Belgium was bought out from the Dexia group by the Belgian state and has continued to operate, since March 2012 under the new name Belfius. The French bank focused on local government lending was restructured as SFIL. The remaining part of the Dexia group was left in a "bad bank", still called Dexia, to be gradually wound down.
In the 2010 Fortune Global 500 (which lists companies by total income) Dexia was ranked 49th, the top-ranked Belgian company.
The company was founded in 1996 through the merger of Crédit Communal de Belgique (founded in 1860) and Crédit Local de France (founded in 1987). The Dexia Group was founded as a dual-listed company, but in 1999 the Belgian entity took over the French entity to form one company. The company is headquartered in Brussels, Belgium. France and Belgium just injected another combined €5.5 billion ($7 billion) into Dexia.
On 29 September 2008, Dexia came under pressure due to the 2008 financial crisis. Other banks and financial institutions refused to provide further credit to Dexia because of potential losses at its U.S. subsidiary FSA and from a multi-billion loan to troubled German bank Depfa. The price of the Dexia share, having peaked above €20 in the previous years, but gradually fallen to around €10, dropped in one day to €6.62.
The next day the rating agency Moody's downgraded Dexia's long term debt and deposits ratings from Aa1 to Aa3, and downgraded the individual banks' strengths to C− ("adequate intrinsic financial strength") with a negative outlook.
Dexia was quickly forced to apply for a taxpayer bailout. This support was assured within days, taking two forms: