Tue Oct 4, 2011 7:11am EDT
By James Regan and Philip Blenkinsop
PARIS/LUXEMBOURG, Oct 4 (Reuters) – France and Belgium will guarantee the financing of stricken bank Dexia , finance ministers pledged on Tuesday as officials prepared a rescue designed to stop its troubles from worsening the euro zone crisis.
“We are going to take action concerning our banks, and the decision taken so far is to act with a guarantee,” Belgian Finance Minister Didier Reynders said after a joint government statement that followed a 38 percent drop in the banks share price in early trading.
Brought low in recent weeks by the bank’s exposure to the euro zone’s weakest country, Greece, shares in Dexia recovered some ground after the pledge, but still stood 17 percent lower at 1050 GMT.
Anyone have any idea if/how this will affect the EMC? We’re approaching 10 years with this monstrosity.