The Belgian cabinet on Wednesday met to consider extending further guarantees to KBC amid talk of more writedowns on the bank’s CDO portfolio. By contrast, the bail-out of Dexia, the Franco-Belgian bank, looked to be bearing fruit as it reported a profitable first quarter on Wednesday after net losses of €3.3bn in 2008. Trading in KBC shares was suspended on Wednesday after the troubled bank asked regulators to protect it from “wild rumours” of a third government rescue plan in seven months.

This entry was posted by Gwen Robinson on Thursday, May 14th, 2009 at 5:17 and is filed under Capital markets. Tagged with KBC. Edit this entry.