Dexia
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Publicado: 2 de noviembre de 2012
DEXIA
Dexia is a financial institution of Franco-Belgian origin. Due to the financial crisis affecting the whole world in 2008, it began havingsevere financial losses. Other banks refused to lend their support because of the few options that this aid would do any good.
Finally, the bank wasforced to seek a bailout by the Government, which occurred a few days. Later, Dexia’s director (Pierre Richard) and its CEO (Axel Miller) gave uphis post at the company as a consequence of the bailout. In 2009, the bank published their loss: 3300 million euros in 2008.
From the year 2010, theEuropean Commission accepted Dexia’s plan of reorganization but there were some conditions, such as : certain subsidiaries should be deleted(Crediop Dexia, Dexia Sabadell Dexia Banka Slovensko ) or that the bank should reduce its size by 2014.
In 2011, the Belgian bank obtained one of thehighest score in the so called “stress test” of the European Commission. However, a month later it announced losses of more than 4000 million euros. Asa result, Dexia was again in the spotlight of other markets.
One of the possible causes of Dexia’s problems is that at the moment of the test, itwas not taken into account that some countries could declare bankruptcy, which would affect vulnerable entities, as in the case of Dexia. This iswhat happened with the bank after the first bailout of Greece.
Finally, French and Belgian governments pledged to prevent the failure of this entity.
Dexia is a financial institution of Franco-Belgian origin. Due to the financial crisis affecting the whole world in 2008, it began havingsevere financial losses. Other banks refused to lend their support because of the few options that this aid would do any good.
Finally, the bank wasforced to seek a bailout by the Government, which occurred a few days. Later, Dexia’s director (Pierre Richard) and its CEO (Axel Miller) gave uphis post at the company as a consequence of the bailout. In 2009, the bank published their loss: 3300 million euros in 2008.
From the year 2010, theEuropean Commission accepted Dexia’s plan of reorganization but there were some conditions, such as : certain subsidiaries should be deleted(Crediop Dexia, Dexia Sabadell Dexia Banka Slovensko ) or that the bank should reduce its size by 2014.
In 2011, the Belgian bank obtained one of thehighest score in the so called “stress test” of the European Commission. However, a month later it announced losses of more than 4000 million euros. Asa result, Dexia was again in the spotlight of other markets.
One of the possible causes of Dexia’s problems is that at the moment of the test, itwas not taken into account that some countries could declare bankruptcy, which would affect vulnerable entities, as in the case of Dexia. This iswhat happened with the bank after the first bailout of Greece.
Finally, French and Belgian governments pledged to prevent the failure of this entity.
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