French PM meets Belgium govt officals to discuss troubled bank

(9 Oct 2011)
Brussels - 9 October, 2011
1. Wide of Egmont Palace in Brussels
2. Mid of cars arriving with French Prime Minister Fran�ois Fillon
3. Mid of Belgium Prime Minister Yves Leterme and Belgium Finance Minister Didier Reynders waiting
4. Close up of Fillon getting out of a car and shaking hands with Leterme and Reynders
5. Mid of cameras
6. Mid of Luxembourg Finance Minister, Luc Frieden, arriving
7. Mid of police
Paris - 8 October, 2011
8. Various of French-Belgian bank Dexia
STORYLINE:
French Prime Minister Fran�ois Fillon met his Belgian counterpart, Yves Leterme, in Brussels on Sunday to discuss the potential break-up of the troubled French-Belgian bank Dexia which is facing a liquidity crisis.
Both countries became part owners of the bank when they bailed it out in 2008.
Also present at the meeting were Belgium Finance Minister, Didier Reynders, and Luxembourg Finance Minister, Luc Frieden.
Dexia has significant exposure to Greece, Italy, and Spain, countries that investors fear might default on their debts.
Dexia SA is in negotiations to sell off its Luxembourg affiliate to a group of international investors and the Luxembourg government, in what may be the first step in a partial break-up of the bank.
One of the aims of the meeting was to finalise a plan to protect the bank's depositors.
Finding a solution is particularly urgent for Belgium because on Friday Moody's Investors Service placed the country's AA1 rating on review for possible downgrade, due in part to the expected expense of guaranteeing that Dexia's depositors will lose no money.
After Dexia's shares plunged last week amid fears it could go bankrupt, the French and Belgian governments stepped in and guaranteed its financing and deposits.
The bank said in a statement on Friday that trading in its shares would remain frozen until it could "communicate more precisely on the various choices and options concerning the future of the group."

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