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Scramble to rescue Franco-Belgian bank

Scramble to rescue Franco-Belgian bank
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French and Belgian finance officials are busy finalising plans to shore up stricken bank Dexia.

The bank, which operates in both countries, came near to collapse last week due to bad assets. Its shares have been suspended since Thursday after losing 42 per cent in less than a week.

Dexia’s problems have added to investors’ worries about the solidity of European banks and a deepening of the euro zone debt crisis.

Ratings agency Moody’s has warned Belgium of a possible credit downgrade as a result of bailing out the bank.

All of which prompted a protest at Dexia’s head office. The organisers are angry that the bank was bailed out by the tax payer in 2008 and now needs help again.