WSJ writes "Dexia Shares Tumble on Break-Up Fears". It says, "Dexia SA's shares fell sharply for a second-straight day Tuesday, as France and Belgium's finance ministers said they will support the troubled bank amid signs that it could be split up. In a joint statement, French finance minister Francois Baroin and Belgian finance minister Didier Reynders said the two governments stand behind the bank's customers and creditors as they raise their commitment to shore up the struggling bank, the countries' finance ministers said Tuesday. "Regarding Dexia's restructuring, the French and Belgian states, in coordination with the central banks, will take all the necessary measures to safeguard the bank's depositors and creditors," French finance minister Francois Baroin and Belgian finance minister Didier Reynders said in a statement. "To this end, they commit to bringing their guarantee to funds raised by Dexia," the ministers said. The French-Belgian bank said in a statement after midnight Monday that the bank's large portfolio of legacy assets is hampering it structurally, following a five-hour emergency meeting Monday evening." Note that Crane Data only found a single holding of Dexia in its August 31 Money Fund Portfolio Holdings collection (which matured in mid-September, so no direct exposure is held by money funds. Dexia does appear as the provider or guarantor in a number of tax-exempt securities though, but many times this support is not listed in the municipal holdings (it is listed in some though). (See Dexia's latest statement here.)
