The rump Dexia now owned by the Belgian government is a structurally loss-making enterprise that will cost the Belgian government 2 billion in deficits every year from 2014. This is what Flemish language Belgian daily De Standaard is reporting based on inside sources. Clearly this will make the Belgian deficit figures harder to reach.
The insider, investment banker Bernhard Ardaen, worked for Dexia for twenty years and sat on its credit committee where each week they decided on the purchase of hundreds of millions of euros of bonds. He also advised the company during the first rescue in 2008. He has written a book about his experience that is very critical of the company, explaining how this small time operator hit the big time and blew itself up. Crucially, he says there were not enoug...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.