Belgium Bails Out Failing Dexia

Leading Franco-Belgian bank Dexia has agreed to a government rescue plan—making it "the biggest euro zone bank failure in quite some time," one analyst tells the New York Times. The plan will nationalize Dexia's Belgian banking division in a $5.4 billion government buyout; meanwhile, Belgium, France, and Luxembourg are providing the bank with $121 billion in guarantees, Reuters reports. Belgium will cover 60.5% of the guarantees, with France providing 36.5% and Luxembourg the rest.

Without access to wholesale funds, Dexia's shares plummeted 42% last week; trading was suspended Thursday until later today. It's not the first time Dexia has needed government help. The news comes as France and Germany promised that plans to protect Europe's banks from a possible Greek default will be ready in time for November's G20 meeting, though neither leader offered details of how such a plan would work. (More France stories.)