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Dexia Group was the biggest financial institution in Belgium and it’s become the first banking casualty of the current eurozone crisis. By making risky investments in Greek debt it gambled on a big payoff, instead it sucked up a huge loss and is being broken up.
On October 6, 2011 Reuters News Agency commented that, “By rights, the bank’s executive and supervisory boards should be tarred and feathered, and prodded with sharp sticks through the centre of Brussels to the European Court of Shame.”
Dexia’s failure is a repeat of the hazardous strategy that brought down Lehman Brothers in 2008.
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