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Dexia bank loses 82 million euro on currency deals

Dexia bank loses 82 million euro on currency deals

Public-sector lender Dexia said Tuesday that it lost 82 million euros ($102 million) trading currency on unusually volatile foreign exchange markets.
The Belgian-French bank said some professional clients of its Slovakian unit had built up excessive currency exposure trading on the South African rand which made them unable to meet margin calls and damaged their business.
Dexia said it will absorb the losses in its third quarter earnings, due Nov. 14. It will also replace the CEO and chairman of the Slovak subsidiary Dexia Banka Slovensko.
Dexia received a 6.4 billion euro ($9.2 billion) cash injection from the French, Belgian and Luxembourg governments after it found it difficult to get credit on tight lending markets. The bank ran up huge potential losses on U.S. subprime housing loans.


Updated : 2021-04-11 18:10 GMT+08:00