FACTBOX - Bank bailouts around the world

Tue Sep 30, 2008 3:07pm BST
 
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(Reuters) - Bank rescues spread in Europe on Tuesday after U.S. lawmakers rejected a $700 billion (388 billion pound) rescue plan for the financial industry.

Following are the major bank bailouts and nationalisations by various governments around the world in the last fortnight:

* BELGIUM, FRANCE, LUXEMBOURG & NETHERLANDS -- Belgian, French and Luxembourg governments and shareholders on Tuesday pledged 6.4 billion euros (5 billion pounds) for Dexia, the world's largest lender to municipalities, to boost its capital and attempt to restore confidence. Under the plan, Belgian government and other Belgian stakeholders would invest 3 billion euros, the French government 1 billion euros and French state-controlled Caisse des Depots (CDC) 2 billion euros. The Luxembourg government would invest 376 million euros.

-- The Belgian, Dutch and Luxembourg governments agreed to inject 11.2 billion euros into banking and insurance company Fortis on Monday to head off the first major bank crisis to hit the euro zone in 13 months of global financial turmoil. Each government will take a 49 percent stake in Fortis banks in their respective countries.

* BRITAIN -- Britain nationalised Bradford & Bingley on Monday, making the buy-to-let mortgage lender the second UK bank to be taken into public ownership this year after Northern Rock. After talks failed to find an outright buyer for B&B, which had suffered badly due to its heavy exposure to the slumping housing market, the Treasury said it would take over the bank's 50 billion pound mortgage portfolio and sell its deposits and branches to Spanish bank Santander.

* DENMARK -- Denmark's central bank stepped in to secure liquidity at Ebh Bank on September 22, after Ebh cut its full-year profit outlook for the second time in two weeks and sacked its managing director. Ebh did not say how much liquidity it had received, or which Danish banks joined with the central bank in the cash booster.

* GERMANY -- On Monday Germany threw a lifeline to cash-strapped lender Hypo Real Estate by agreeing to provide the bulk of 35 billion euros in credit guarantees for Hypo, which had been especially vulnerable to the freeze in interbank lending following the Wall Street collapse.

* ICELAND -- Iceland took control of Glitnir, the island's third-largest bank, on Monday. Iceland will buy a 75 percent stake in Glitnir for 600 million euros. The bailout followed a sudden deterioration in Glitnir's funding over the past few days and sent the Icelandic crown skidding to a fresh record low against the euro.

* IRELAND -- Ireland said on Tuesday it would guarantee all bank deposits for two years to maintain financial stability amid international market turmoil which has hit Irish bank shares particularly hard. The offer came after some Irish banking stocks lost almost half of their value on Monday alone. The scheme, which expires in September 2010, also guarantees covered bonds, senior debt and dated subordinated debt.  Continued...

 
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