Dexia bank slashes jobs
Dexia SA, the world's biggest lender to local authorities, said that it would scrap 602 jobs to shave some euro600 million from its running costs.
By Agencies |
BRUSSELS: Dexia SA, the world's biggest lender to local authorities, said Friday that it would scrap 602 jobs to shave some euro600 million from its running costs.
The cutbacks come after the bank ran up huge losses at a US bond insurance unit that forced it to seek a euro6.4 billion capital injection from France, Belgium and Luxembourg last year. It sold off the American unit in July.
Dexia said cutting back its retail and commercial banking and insurance divisions would see 445 jobs go in Belgium, 143 in Luxembourg and 14 in France.
The bank said plans to refocus on its core franchise- as a local government lender- were on track, its liquidity situation was improving and it was in line to reduce costs by euro200 million this year.
The French government last year became the bank's largest shareholder with a 25 percent stake. The French-Belgian bank is the biggest lender to French local governments and also lends widely to cities from Spain to the US.
The cutbacks come after the bank ran up huge losses at a US bond insurance unit that forced it to seek a euro6.4 billion capital injection from France, Belgium and Luxembourg last year. It sold off the American unit in July.
Dexia said cutting back its retail and commercial banking and insurance divisions would see 445 jobs go in Belgium, 143 in Luxembourg and 14 in France.
The bank said plans to refocus on its core franchise- as a local government lender- were on track, its liquidity situation was improving and it was in line to reduce costs by euro200 million this year.
The French government last year became the bank's largest shareholder with a 25 percent stake. The French-Belgian bank is the biggest lender to French local governments and also lends widely to cities from Spain to the US.
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