Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Thursday, November 24, 2011

Dexia, Franco-Belgian Bank, Using Emergency Liquidity Facilities To Tackle 'Very Dramatic' Problem

BRUSSELS (Ben Deighton) - Franco-Belgian bank Dexia (DEXI.BR) is accessing emergency liquidity facilities in Belgium, France, Spain and Italy, a banking source said on Thursday, as analysts described its liquidity situation as "very dramatic."

The source said the bank was making use of the Emergency Liquidity Assistance (ELA) facility of the Belgian central bank as well as "national central banks in France, in Spain, in Italy," where Dexia has units.

One analyst said the fact Dexia was tapping national central banks' liquidity via the European Central Bank network showed how bad the situation had become for the lender.

"The emergency window of the ECB ... is very expensive, so it shows that the liquidity situation is very dramatic," the analyst said, speaking on condition of anonymity.

"At some point you run out of unencumbered assets to post at the ECB, and then the only way to fund yourself is via the ELA, which is clearly not a good sign," the analyst said.

Dexia and the central banks of France and Belgium both declined to comment.

The source added that Dexia would try to raise money on markets again after the finalization of a 90 billion euro ($120 billion) guarantee scheme agreed in October by France, Belgium and Luxembourg.

Belgian Finance Minister Didier Reynders said Wednesday that he hoped to reach an agreement with the European Commission about the restructuring plan for Dexia (DEXI.BR) in the coming days.

($1 = 0.7490 euros)

(Additional reporting by Dan Flynn in Paris; Editing by Luke Baker and Will Waterman)

Origin
Source: Huff 

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