The bad news: They're in Belgium.
Belgium has a very weak government.
After the June 2010 elections we're still seeing headlines like this Sept. 16 version from the Daily Mail:
"Belgium to 'form a government' after more than a YEAR without one"
There is no one to bail out the banksters.
From the Financial Times:
Europe’s sovereign debt crisis has forced Dexia, the Franco-Belgian banking group, into emergency talks to consider strategic options including an effective break-up, people familiar with the matter said.And from the WSJ Europe's The Source blog:
The lender, a municipal financing expert, was looking at setting up a “bad bank” to hold a portfolio of assets which has long burdened it, the people said on Monday.
The Brussels-based group, one of the first European banks to be bailed out in 2008, holds €20.9bn in sovereign debt issued by Greece, Italy and other troubled eurozone countries. It remains heavily reliant on short-term borrowing to finance its operations, while much of its lending is to long-term borrowers....MORE
Outlook Dims for Dexia