France and Belgium will quotstep inquot if needed to save the troubled Dexia bank the Belgian finance minister said Tuesday amid fears of collapsing dominos throughout Europe39s ailing banking system. prompts Belgian Fin Min Reynders to say that the government will act to support Dexia SA.

Dexia faces quotconcerns about further deterioration in the liquidity position of the group in light of the worsening funding conditions in the wider marketquot said Moody39s when it announced a review of Dexia39s credit rating. Dexia received a 6bneuro bailout at the height of the financial crisis.

BelgianFrench bank Dexia39s capital position looked increasingly stretched by its exposure to debtladen Greece raising pressure on its state shareholders to consider a second bailout.

Back on Friday when we closed out the Dexia long sub CDS trade we said quotWe expect a partial or complete nationalization to be announced imminently which in addition to all other side effects would lead in a Bear. First they will have to read all the. Only that the CEO will take the quotnecessary measuresquot to fix the company.

Dexia has called an emergency board meeting amid fears over its exposure to Greek debt.

Dexia It got crushed yesterday and then held an amergency board meeting last night. Nothing39s resolved of course.

Mish39s financial blog covers global news and macroeconomic events regarding the world economy.

Dexia shares off 7. The stock is off 22 after being. They had been down closer to 12. The blog39s primary focus is inflation deflation and hyperinflation topics especially currencies gold silver crude oil energy.

ETF Trends offers news articles and research tools for ETF investors and investing. The FrancoBelgian bank already bailed out. Meanwhile we wait for the US opening bell to see how today39s latest rounds of European banking concerns jump the wire and affect the big financial players.