France Shudders at Bank Bailout of Its Own

Belgian division to be nationalized; Belgium, France offer guarantees

(NEWSER) - 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. More»

(NEWSER) - Attempts to revive the banking industry so far have been “inadequate,” Timothy Geithner said today, promising to “fundamentally reshape” the government’s plan to rescue banks, driven by more forceful action. “We want their balance sheets cleaner and stronger,” Geithner said. To do it, he’ll force banks to go through a “stress test,” and roll out a host of new and expanded programs. More»

Riding a wave of popularity, the president-elect hopes to act quickly on economy

(NEWSER) - If there's a silver lining to the profound economic crisis President-elect Barack Obama is stepping into, the New York Times reports, it's that the recovery plan that's taking shape under his direction affords him an unprecedented chance to address his most ambitious campaign promises right out of the blocks. Riding a popularity surge, he has an opportunity few presidents have enjoyed: a bipartisan green light to spend more and cut taxes. More»

New package increase its control over banks, insures troubled assests

(NEWSER) - The British government today rolled out a new bank rescue plan that includes $147 billion to insure troubled mortgage assets, reports the New York Times. It also offers an additional $73.5 billion to the Bank of England to buy up struggling banks’ “high-quality assets” to insure credit lines to some of Britain's biggest companies, explains the Guardian. Prime Minister Gordon Brown tied new bailout funds directly to lending, demanding that banks make credit more available. More»

Veterans of S&L bailouts in catbird seat in current crisis

(NEWSER) - For a tight-knit group of former top government officials, the current financial crisis is a golden opportunity. Veterans of the savings and loan bailout of the 1990s, these operatives, now mostly lawyers and bank advisers, are doing a brisk business telling clients how to profit from the meltdown, the New York Times reports. “It is a good time to be me,” said one lawyer who helped found the Resolution Trust Corporation. More»