Dexia, the Franco-Belgian bank that received repeated government bailouts, could be forced to sell off its core public-financing division if it fails to convince the European Commission that the business is sustainable, reports the WSJ. After months of negotiation over a restructuring plan submitted to Brussels in late February, the commission remains sceptical, say people familiar with the situation. Ultimately, Dexia may have to sell a large portion of its assets or even all of Credit Local de France, which accounts for roughly one-third of its public-finance lending.
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