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FACTBOX: Bank bailouts around the world

Tue Sep 30, 2008 9:59am EDT

(Reuters) - Bank rescues spread in Europe on Tuesday after the House rejected a $700 billion rescue plan for the financial industry.

U.S.  |  Russia  |  Crisis in Credit

Following are the major bank bailouts and nationalizations by various governments around the world in the last fortnight:

* BELGIUM, FRANCE, LUXEMBOURG & NETHERLANDS -- Belgian, French and Luxembourg governments and shareholders on Tuesday pledged 6.4 billion euros ($9.2 billion) for Dexia, the world's largest lender to municipalities, to boost its capital and attempt to restore confidence. Under the plan, Belgian government and other Belgian stakeholders would invest 3 billion euros, the French government 1 billion euros and French state-controlled Caisse des Depots (CDC) 2 billion euros. The Luxembourg government would invest 376 million euros.

-- The Belgian, Dutch and Luxembourg governments agreed to inject 11.2 billion euros ($16.4 billion) into banking and insurance company Fortis on Monday to head off the first major bank crisis to hit the euro zone in 13 months of global financial turmoil. Each government will take a 49 percent stake in Fortis banks in their respective countries.

* BRITAIN -- Britain nationalized Bradford & Bingley on Monday, making the buy-to-let mortgage lender the second UK bank to be taken into public ownership this year after Northern Rock. After talks failed to find an outright buyer for B&B, which had suffered badly due to its heavy exposure to the slumping British housing market, the Treasury said it would take over the bank's 50 billion pound ($90.12 billion) mortgage portfolio and sell its deposits and branches to Spanish bank Santander.

* DENMARK -- Denmark's central bank stepped in to secure liquidity at Ebh Bank on September 22, after Ebh cut its full-year profit outlook for the second time in two weeks and sacked its managing director. Ebh did not say how much liquidity it had received, or which Danish banks joined with the central bank in the cash booster.

* GERMANY -- On Monday Germany threw a lifeline to cash-strapped lender Hypo Real Estate by agreeing to provide the bulk of 35 billion euros ($50 billion) in credit guarantees for Hypo, which had been especially vulnerable to the freeze in interbank lending following the Wall Street collapse.

* ICELAND -- Iceland took control of Glitnir, the island's third-largest bank, on Monday. Iceland will buy a 75 percent stake in Glitnir for 600 million euros ($878 million). The bailout followed a sudden deterioration in Glitnir's funding over the past few days and sent the Icelandic crown skidding to a fresh record low against the euro.

* IRELAND -- Ireland said on Tuesday it would guarantee all bank deposits for two years to maintain financial stability amid international market turmoil which has hit Irish bank shares particularly hard. The offer came after some Irish banking stocks lost almost half of their value on Monday alone. The scheme, which expires in September 2010, also guarantees covered bonds, senior debt and dated subordinated debt.

-- On Sept 20, a week after investment bank Lehman Brothers filed for bankruptcy protection, the Irish government raised the state guarantee limit on deposits to 100,000 euros ($143,500) from 20,000 euros previously.

* RUSSIA -- Russia said on September 18 it could spend $20 billion on equity purchases as part of an emergency state support totaling $130 billion to stem the worst stock market losses in a decade and ease liquidity worries. The package of measures was announced amid rising worries about Russia's banking sector after inter-bank lending almost ground to a halt.

* USA -- The Federal Reserve bailed out troubled insurer American International Group Inc (AIG) on September 16 by offering to lend up to $85 billion in a plan aimed at saving the company from a "disorderly failure" that could damage the global economy. Under the two-year facility, the U.S. government will receive a 79.9 percent equity interest in the insurer.

-- The Bush Administration asked Congress for $700 billion on September 20, to bail out firms burdened with bad mortgage debt.



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