(Reuters) - Worried customers withdrew funds and overloaded the telephone helpline of struggling bank Dexia (DEXI.BR) on Wednesday as governments raced to put a rescue plan in place and stop its troubles from deepening the euro zone debt crisis.
One French politician also expressed concern that the problems facing Franco-Belgian Dexia, a key player in municipal funding, might contaminate other banks and hit already tight financing for local authorities.
Belgium and France hope to finalize by Thursday a rescue plan for the bank, now in need of a second bailout in three years because of its exposure to Greek debt and trouble accessing wholesale funds.
"We have had some customers taking money out, but it has been limited," a Dexia spokeswoman said. "We have faced many questions and we have been explaining the situation a lot."
Dexia's telephone helpline began with a warning that its system was 'overloaded'. Otherwise, there was no obvious sign of panic or queues at Dexia's branches in Brussels.
"It doesn't worry me, I know it will be okay," said Mora Ba, a 39-year-old plumber, coming out of a branch in Brussels.
Claude Bartolone, a lawmaker for the Seine Saint-Denis department north of Paris, said details were urgently needed.
"It would be unacceptable to contaminate the Banque Postale and especially the Caisse des Depots, given the trust that exists between it and local governments," he said.
READ THE REST OF THE STORY CLICK HERE.
No comments:
Post a Comment