Friday, February 24, 2012

Thousands Of French Towns Are Asking For Bailouts After Discovering Toxic Assets

"The latest victims of the financial crisis: small towns in France.

At least 5,500 French towns have taken out toxic loans from the failed French-Belgian bank Dexia.
With no place to unload that debt, and no way to pay it back, these towns are suddenly under water.
“If the euro-zone crisis continues, it’s very possible that some towns in France go bust, like in the United States,” said Sofiane Aboura, associate professor at Paris Dauphine University.
Dexia was the first European bank to fall victim to the eurozone debt crisis. In 2008, France, Belgium and Luxembourg took control of Dexia with a $8.4 billion bailout — a move meant to secure the municipal lender..."