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Dexia N.V./S.A., or the Dexia Group, is a Franco-Belgian
financial institution Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...
formed in 1996. At its peak in 2010, it had about 35,200 members of staff and a core shareholders' equity of €19.2 billion. In 2008, the bank entered severe financial difficulties and received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis. Due to big losses, suffered among others from the debt haircut on Greek government bonds, and an orderly resolution process began in October 2011. As part of the resolution, Dexia Bank Belgium was bought out from the Dexia group by the Belgian state and has continued to operate, since March 2012 under the new name Belfius. The French bank focused on local government lending was restructured as . The remaining part of the Dexia group was left in a "bad bank", still called Dexia, to be gradually wound down.


Profile

In the 2010
Fortune Global 500 The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine. Methodology Until 1989, it listed onl ...
(which lists companies by total income) Dexia was ranked 49th, the top-ranked Belgian company. The company was founded in 1996 through the merger of Gemeentekrediet van België/Crédit Communal de Belgique (founded in 1860) and Crédit Local de France (founded in 1987). The Dexia Group was founded as a dual-listed company, but in 1999 the Belgian entity took over the French entity to form one company. The company is headquartered in
Brussels Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
, Belgium. France and Belgium just injected another combined €5.5 billion ($7 billion) into Dexia.


History


Belgium: Gemeentekrediet van België / Crédit Communal de Belgique

* 1860 – Foundation of the Gemeentekrediet van België / Crédit Communal de Belgique, specifically aimed at financing the investments of the local administrations. The communities were
shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal o ...
s, for a value of at least 5% of the amounts drawn. * 1947 – Development of a network of retail branches that allow drawing funds from the general public through
savings account A savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn. Traditionally, transa ...
s. From 1960 on the branches were run by independent agents, allowing a broader range of services and products to be offered and a lasting relationship with clients to be developed. * 1990 – Start of the international expansion of the bank with the creation of the Cregem International Bank in the Grand Duchy of Luxembourg, specialising in the management of large sums of money. * 1991 – The Gemeentekrediet builds on its international expansion by taking a stake of 25% in the Banque Internationale à Luxembourg (BIL), the biggest bank in Luxembourg. In early 1992 the firm increased its stake in BIL to 51%.


France: Crédit Local de France

* 1987 – Foundation of the Crédit Local de France as a successor to the CAECL (Caisse d'aide à l'équipement des collectivités locales); it was a public administrative institution, managed by the Caisse des dépôts. The Crédit Local de France was a specialised financial institution responding to the needs of local administrations, that have become important economic agents in their own, and make as much use of products and services of the
financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial ma ...
s as businesses. * 1990 – The Crédit Local de France begins an international expansion with the opening of an American subsidiary, the CLF New York Agency. Aiming at a similar development in Europe, the CLF mainly operated in Great Britain, Spain, Germany and Italy; additional activities were later added in Austria,
Scandinavia Scandinavia; Sámi languages: /. ( ) is a subregion in Northern Europe, with strong historical, cultural, and linguistic ties between its constituent peoples. In English usage, ''Scandinavia'' most commonly refers to Denmark, Norway, and S ...
, and Portugal. * 1991 – Crédit Local de France underwent an
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
on the
Paris Stock Exchange Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon, and Brussels exchanges in September 2000 to form Euronext NV. As of 2022, the 795 companies listed had a combined marke ...
. The shareholders at the time were the French State (25.5%), the Caisse des dépôts (25%), and individual investors from France and abroad (49.5%).


Dexia: the group

* 1996: Merger of the Gemeentekrediet / Credit Communal de Belgium and the Crédit Local de France to form Dexia. * 1997: Dexia takes a stake of 40% in the Italian firm Crediop, the biggest privately owned bank specialising in finance for Italian local administrations. * 1998: Dexia increases its shareholding in Crediop to 60%. * 1999: First listing of Dexia Group as a dual-listed company on the
Brussels Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
and Paris stock exchanges in November, at a price of €6.86 per share. In Belgium the stock became part of the BEL20 index, and in France of the
CAC 40 The CAC 40 (french: CAC quarante ) (''Cotation Assistée en Continu'') is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant stocks among the 100 largest market caps on the E ...
. The group broadens its insurance activities in France, Belgium and Germany. Dexia S.A. the Belgium side soon became the parent company of French side Dexia Credit Local. * 2000: Acquisition of Financial Security Assurance (FSA) in the United States, a major player in credit enhancement for municipalities, making Dexia the world leader in the market of financial services to the public sector. Dexia is active in nearly all European countries in this market as well. Start of an annual reserved capital injection to which only Dexia members of staff can inscribe. * 2001: Acquisition of Artesia Banking Corporation, a banking group with activities as retail bank (BACOB), insurance (DVV) and
asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...
(Cordius). The stake in Crediop grows to 70%, and Dexia gains control over Otzar Hashilton Hamekomi, an Israeli credit provider for local authorities. * 2002: Integration of the Artesia branches in Belgium. * 2006: Acquisition of 99.8% of the Turkish firm DenizBank. * 2006:
Royal Bank of Canada Royal Bank of Canada (RBC; french: Banque royale du Canada) is a Canadian multinational financial services company and the largest bank in Canada by market capitalization. The bank serves over 17 million clients and has more than 89,000 ...
created Institutional Investment Joint Venture with Dexia. It is a 50/50 Partnership called RBC Dexia Investor Services.


Crisis 2008/2009

On 29 September 2008 Dexia came under pressure during the crisis in the banking sector. Other banks and financial institutions refused to provide further credit to Dexia because of potential losses at its U.S. subsidiary FSA and from a multi-billion loan to troubled German bank
Depfa DEPFA Bank plc was until 2014 a Dublin-based German-Irish bank. It provided financial services to the public sector and also provided financing for larger infrastructure projects. The name derivates from ''Deutsche Pfandbriefbank''. History DE ...
. The price of the Dexia share, having peaked above €20 in the previous years, but gradually fallen to around €10, dropped in one day to €6.62. The next day the rating agency
Moody's Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internationa ...
downgraded Dexia's long term debt and deposits ratings from Aa1 to Aa3, and downgraded the individual banks' strengths to C− ("adequate intrinsic financial strength") with a negative outlook. Dexia was quickly forced to apply for a taxpayer bailout. This support was assured within days, taking two forms: * a capital injection of €6.4 billion, consisting of €3 billion from the Belgian State and regional governments, €3 billion from the French State and Caisse des Dépôts et Consignations and €376 million from the government of Luxembourg. * a state guarantee (effective from 31 October 2008) covering Dexia's liabilities towards credit institutions and institutional counterparties, as well as bonds and other debt securities issued for the same counterparties, for a total maximum amount of €150 billion. Belgium provided 60.5% of the guarantee, with a 36.5% contribution from the French state and 3% from Luxembourg. The three states have the potential to make a profit from their intervention: * the new capital buys Dexia shares at a price of €9.90 per asset * for the state guarantee Dexia has to pay a monthly fee, from which the three states benefit proportionally to their share in the guarantee. The guaranteed amount varies continually as a function of Dexia's loans on the financial markets. It peaked mid-2009 at around €100 billion, but after Dexia managed to start selling non-guaranteed
commercial paper Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of rarely more than 270 days. In layperson terms, it is like an " IOU" but can be bought and sold because its buyers and sellers have some ...
and
bond Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemical ...
s again, fell to half this size by the end of 2009. In 2009 Dexia paid a fee of 0.5% on the guaranteed credits with a term of less than one year, and 0.865% on the credits longer than one year. The guarantee is currently planned to end in November 2010. Since Dexia had a New York banking office they were eligible for various bailouts from the US Federal Reserve. At its peak Dexia had borrowed $58.5 billion. On 30 September 2008 the company's chairman Pierre Richard and CEO Axel Miller were dismissed, and were replaced on 7 October 2008 by former
Belgian prime minister german: Premierminister von Belgien , insignia = State Coat of Arms of Belgium.svg , insigniasize = 100px , insigniacaption = Coat of arms , insigniaalt = , flag = Government ...
Jean-Luc Dehaene Jean Luc Joseph Marie "Jean-Luc" Dehaene (; 7 August 1940 – 15 May 2014) was a Belgian politician who served as the prime minister of Belgium from 1992 until 1999. During his political career, he was nicknamed "The Plumber" and "The Mineswee ...
and respectively. On 24 October 2008, Francois Rebsamen, the socialist Mayor of Dijon and a French Senator, vacated his place on the board of Dexia Credit Local, while
Antoine Rufenacht Antoine Rufenacht (11 May 1939 – 5 September 2020) was a French right-wing ( The Republicans) politician and former mayor of Le Havre. He took the mayoral seat from Daniel Colliard ( PCF) at the municipal election of 1995 and was reelected ...
, UMP mayor of
Le Havre Le Havre (, ; nrf, Lé Hâvre ) is a port city in the Seine-Maritime department in the Normandy region of northern France. It is situated on the right bank of the estuary of the river Seine on the Channel southwest of the Pays de Caux, very ...
,
Philippe Duron Philippe Duron (born 19 June 1947) is a French politician. He was the mayor of Caen between 2008 and 2014 and deputy for Calvados's 1st constituency. Philippe Duron received a degree in history in 1975 and was a teacher until 1997. His polit ...
, socialist mayor of
Caen Caen (, ; nrf, Kaem) is a commune in northwestern France. It is the prefecture of the department of Calvados. The city proper has 105,512 inhabitants (), while its functional urban area has 470,000,Christophe Bechu, president of
Maine-et-Loire Maine-et-Loire () is a department in the Loire Valley in the Pays de la Loire region in Western France. It is named after the two rivers, Maine and the Loire. It borders Mayenne and Sarthe to the north, Loire-Atlantique to the west, Indre-et ...
province stayed. At the end of 2008 Dexia sold the healthy parts of FSA, ceased its trading activities in Paris and trading on its own account in the financial markets. Further losses are still possible on the remaining FSA portfolio. On 19 January 2009
Moody's Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides internationa ...
lowered the
credit rating A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. ...
for Dexia's long term obligations and saving accounts of the three banking parts of Dexia (Dexia Credit Local in France, Dexia Bank Belgium and Dexia Banque Internationale in Luxembourg) from Aa3 to A1. The rating agency also downgraded the Bank Financial Strength Rating for the three banks from C− to D+. On 5 March 2009 Dexia's share price fell to an all-time low of €1.21, a loss of over 90% in a year. A further restructuring plan was announced, with the firm aiming to concentrate on its primary activities, and to avoid risks on the financial markets. A total of 1,500 job cuts were announced, of which more than half were in Belgium, 260 in France, and the rest worldwide. Dexia's share price subsequently increased over the rest of 2009, largely varying between €4 to €7.50. On 31 March 2010 Bloomberg reported that Dexia was one of the largest borrowers from the discount window of the United States
Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
, having outstanding loans of over $30 billion.


Losses

In February 2009 the bank announced net losses of 3.3 billion euros (approximately 4.2 billion US dollars) for 2008. The Dexia 2008 annual report mentions among others losses of €1.6 billion from selling FSA, €600 million on portfolios and €800 million on counterparties (including
Lehman Brothers Lehman Brothers Holdings Inc. ( ) was an American global financial services firm founded in 1847. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, ...
, Icelandic banks, and Washington Mutual) According to the financial services provider Bloomberg Dexia lost €78 million through the
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
of
Bernard Madoff Bernard Lawrence Madoff ( ; April 29, 1938April 14, 2021) was an American fraudster and financier who was the admitted mastermind of the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the NASDAQ ...
.


2010: Downsizing and reorganizing

On 6 February 2010 Dexia could announce that the European Commission had, under certain conditions, approved of the restructuring plan that was necessary to justify the government support for Dexia and to prevent unfair competition: * some acquisitions had to be undone (Dexia Crediop, Dexia Sabadell and Dexia Banka Slovensko) but banking activities in Turkey, highly promising to Dexia, could continue. * by the middle of 2011 the State Guarantee had to be abandoned * in total Dexia had to downsize by one third by 2014. Vintage retail activities represented a bigger share in profits again in 2010; apart from Belgium and France, Turkey became very promising in this area. So much so that predictions were that Turkish staff would account for half of the Dexia employees by 2014. At the same time, outgoing cashflows were diminished by reducing the bonds portfolio; even selling bonds at a loss, if necessary, which explained to a large extent the lesser profits in 2010. More incoming funds from private saving accounts and less outgoing capital through bonds and loans to public institutions meant that Dexia could already worry a bit less about finding sufficient short term funding. The greater international trust in the company also showed when it announced an early retirement from the State Guarantee in 2010.


2011

Dexia and La Banque postale, the bank subsidiary of the French postal services, reached an agreement in January 2011 about a cash transaction involving covered bonds worth €3 billion. This was presented for La Banque Postale as an investment at market conditions, and as an extra source of liquidity for Dexia. Alleged differences of opinion were reported at the top of Dexia. More specifically about tensions between Belgian directors and the French CEO, Pierre Mariani, concerning on the one hand the deficitary investments that had been mostly done in the French division of Dexia, and the liquid funds that were above all present in Belgium. On 15 July the European Banking Authority, as part of its European bank stress tests, gave Dexia a clean bill of health, reporting that its tier 1 capital was 12.1 percent, and would fall to 10.4 percent in 2012 under its "adverse scenario". This would make it one of Europe's safest banks. Dexia posted a €4 billion loss for the second quarter, the biggest in its history, after writing down the value of its Greek debt. On 4 October its shares fell 22% to €1.01 in Brussels, cutting its market value to €1.96 billion. Discussions were taking place about a possible breakup, with a plan to place its "legacy" division into a
bad bank A bad bank is a corporate structure which isolates illiquid and high risk assets (typically non-performing loans) held by a bank or a financial organisation, or perhaps a group of banks or financial organisations. A bank may accumulate a large po ...
with government guarantees. On 10 October, it was announced that the Belgian banking arm will be purchased for €4 billion by the Belgian federal government. Some units such as DenizBank and the Luxembourg retail bank will be put up for sale. Part of its French operations are likely to be purchased by
Caisse des dépôts et consignations The Caisse des dépôts et consignations (CDC; ) is a French public sector financial institution created in 1816, and part of the government institutions under the control of the Parliament. Often described as the "investment arm" of the Fren ...
and La Banque Postale. The remaining troubled assets, including a €95 billion bond portfolio would remain in a "bad bank" that would receive funding guarantees of up to €90 billion provided by the governments of Belgium (60.5%), France (36.5%) and Luxembourg (3%).


2012

On 27 July, Dexia confirms the sale of its 50% share in RBC Dexia Investor Services. The business moves under the sole ownership of
Royal Bank of Canada Royal Bank of Canada (RBC; french: Banque royale du Canada) is a Canadian multinational financial services company and the largest bank in Canada by market capitalization. The bank serves over 17 million clients and has more than 89,000 ...
(RBC) and is renamed RBC Investor Services. In the same year Banque Internationale à Luxembourg (for €730 million) and DenizBank were sold.


2013

In January 2013 Dexia Municipal Agency was sold. It was reported in September 2013 that Dexia had entered into talks with New York Life Investment Management to sell Dexia Asset Management, which was completed on 3 February 2014. In 2013 Société de Financement Local was sold.


2014

ECB officials agreed on Thursday 22 May 2014 that Franco-Belgian bank Dexia would not have to demonstrate it could bear a financial crisis in a Europe-wide stress test, reducing the chances of it needing further state aid. The ECB had already acknowledged Dexia's "specific situation", with an assessment of its finances carried out over its 2011 wind-down plan. That EU-approved plans makes Dexia unique among the 128 major euro zone banks being reviewed by the European Central Bank (ECB) and the 124 EU banks that are being subjected to stress tests by the European Banking Authority (EBA).
Single Supervisory Mechanism The Single Supervisory Mechanism (SSM) is the first pillar of the European banking union and is the legislative and institutional framework that grants the European Central Bank (ECB) a leading supervisory role over banks in the European Union ...
's Comprehensive Assessment in October 2014 shown Dexia had a capital shortfall of €340 million. However, as the bank was guarantee by States, the bank was not required to capital increases. A subsidiary, Dexia Asset Management changed its name to Candriam following its acquisition by New York Life Investments on 3 February 2014.


2015

In 2015 Dexia announced that it would suffered from the possible default of Heta Asset Resolution, a bad bank from the residual of
Hypo Alpe-Adria-Bank International Heta Asset Resolution A.G. is a "bad bank" that was the residual asset of the original Hypo Alpe-Adria-Bank International A.G., which was dismantled in 2014. It was owned by the Government of Austria. The bad bank contained the leasing subsidiary ...
. Via the subsidiary Dexia Kommunalbank Deutschland A.G. (DKD), Dexia had a loan of €417 million to former Hypo Bank.
Carinthia Carinthia (german: Kärnten ; sl, Koroška ) is the southernmost Austrian state, in the Eastern Alps, and is noted for its mountains and lakes. The main language is German. Its regional dialects belong to the Southern Bavarian group. Carin ...
state government offered to buy back the senior bonds for 75% par value and 30% for subordinated bonds of Heta. Previously Carinthia had guaranteed the subordinated bond but later Austrian central government, as instructed by European Union, could not provide any more state aid. Moreover, Financial Market Authority of Austria used the power given by EU Bank Recovery and Resolution Directive, which bail-in the shareholders and subordinated bond holders. On the subsidiaries, Crediop would be run-off, Dexia Credito Local Mexico had been placed in a trust, Dexia Kommunalkredit Bulgaria was liquidated, Dexia Nederland and Dexia Luxembourg (ex-Dexia LdG Banque) abandoned their banking licenses.


2018

Dexia sells its 58.9% interest in Dexia Israel Bank in March 2018. In December 2018, German subsidiary Dexia Kommunalbank Deutschland (DKD) was sold to
Helaba Helaba, short for Landesbank Hessen-Thüringen, is a commercial bank with core regions in Hesse and Thuringia, Germany offering financial services to companies, banks, institutional investors and the public sector, both within Germany and interna ...
for €352 million.


Figures


Dexia shares

Dexia was a member of the BEL20 and
CAC Next 20 The CAC Next 20 is an index of security prices used with the Euronext Paris or Euronext Amsterdam. It gathers the 20 companies whose market capitalizations are ranked after those of the 40 companies who compose the CAC 40. These 20 are possible ca ...
indices. Dexia is also one of the components of the Euro STOXX and Euro STOXX Banks indices.


Results


Shareholder structure


BIC

Dexia's BIC codes are: * For Dexia Credit Local: CLFR FR CC


Controversies


Netherlands

Dexia had ambitious plans in the Netherlands, and took over Bank Labouchère from the Dutch insurer Aegon in August 2000 at the height of the market. On top of this, in 2001 the business bank Kempen & Co was bought and removed from the stock market for about €1 billion. The two acquired companies Labouchère and Kempen & Co were merged into Dexia Netherlands. This merger had to be undone however, because of an asset leasing affair that threatened to damage the reputation of Kempen & Co. The asset leasing affair left Dexia in The Netherlands in the end with so much negative publicity that it decided to reduce its Dutch activities. In 2004 Kempen & Co was sold for about €85 million, a fraction of the buying price, to its management, the
Friesland Bank Friesland Bank was a Dutch retail bank originally focusing on the northern provinces of the Netherlands, Friesland, Groningen, Drenthe, Overijssel, and North Holland. On 2 April 2012 Friesland Bank announced that it would become a 100% daughter ...
, NPM Capital and . Dexia Bank Netherlands still continues to unwind asset leasing contracts under the commercial name of Legio Lease, and the corresponding agreements and court cases. Dexia suffered a substantial loss in March 2008, after a ruling from the
Supreme Court A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
on the legality of leasing contracts, in which contracts were considered invalid for married couples of which both partners had not signed the contract. Dexia as a consequence had to repay these debts plus accrued interests. Luckily for Dexia many customers had previously agreed to a less favourable Duisenberg-agreement and could not revoke this. Eventually only 3,000 of the hundreds of thousands of Legiolease customers profited from this ruling of the High Council.


Sustainability

According to research of Netwerk Vlaanderen Dexia in 2005 together with
AXA Axa S.A. (styled as ''AXA'' or GIG in the Middle East) is a French multinational insurance company. The head office is in the 8th arrondissement of Paris, France. It also provides investment management and other financial services. The ...
, Fortis, ING and KBC invested over €6.6 billion in companies that were involved in human rights violations. The companies and projects in which banks invest are controversial because of their support for dictatorial regimes, forced displacements and forced labour. The criticism concerns among others investments in a gas pipe line in
Myanmar Myanmar, ; UK pronunciations: US pronunciations incl. . Note: Wikipedia's IPA conventions require indicating /r/ even in British English although only some British English speakers pronounce r at the end of syllables. As John Wells explai ...
and the BTC pipe line through Turkey, Azerbaijan and Georgia. In 2005 Dexia announced a new policy concerning the weapons industry. Companies involved in the production of
anti-personnel mine Anti-personnel mines are a form of mine designed for use against humans, as opposed to anti-tank mines, which are designed for use against vehicles. Anti-personnel mines may be classified into blast mines or fragmentation mines; the latter may ...
s will be completely barred from banking services. For investment funds there is no limitation of investments in the weapons industry. Dexia did on the other hand rank 17th in 2011 on the list of ' The Global 100 Most Sustainable Corporations in the World'. Dexia was the third company from the financial sector on the list.


Israeli settlements controversy

Through its Israeli subsidiary, Dexia operates in certain Israeli settlements in the Occupied Palestinian Territories. Several Belgian and French NGOs mounted campaigns to attract attention to this. Leading ultimately in 2011 to concrete plans to sell the Israeli division, .


Remunerations


Axel Miller

After his forced departure in October 2008, CEO Axel Miller was contractually entitled to a 'golden parachute' of €3.7 million. This provoked protest from the French president
Nicolas Sarkozy Nicolas Paul Stéphane Sarközy de Nagy-Bocsa (; ; born 28 January 1955) is a French politician who served as President of France from 2007 to 2012. Born in Paris, he is of Hungarian, Greek Jewish, and French origin. Mayor of Neuilly-sur-Se ...
, and Miller subsequently renounced his bonus, leaving the matter to "the wisdom of the Board of Directors". The board eventually decided to pay him one year's salary (€825,000), thus ignoring Sarkozy's remarks. The French Ministry of Finance stated in April 2009 that it had voted against the payout, but that its representatives on the board were outnumbered.


Salary of Pierre Mariani

Axel Miller's successor, , close to
Nicolas Sarkozy Nicolas Paul Stéphane Sarközy de Nagy-Bocsa (; ; born 28 January 1955) is a French politician who served as President of France from 2007 to 2012. Born in Paris, he is of Hungarian, Greek Jewish, and French origin. Mayor of Neuilly-sur-Se ...
, obtained a salary that is 30% higher than that of Miller. The board of directors unanimously accepted on 13 November 2008 to upgrade the yearly salary of the CEO to €1 million, and to fix the maximum bonus at €2.25 million. Miller's salary was €825,000, with a maximum bonus of €1.8 million.


Bonuses in 2008

Within Dexia Crédit Local, the French component of Dexia group, a pool of €8 million was dedicated to the bonuses of the leading managers, mainly directors. The management indicated that the sum would be shared among 400 to 765 employees.


"Golden hellos"

Philippe Rucheton, the financial director appointed by Dexia in April 2009, coming from
Société Générale Société Générale S.A. (), colloquially known in English as SocGen (), is a French-based multinational financial services company founded in 1864, registered in downtown Paris and headquartered nearby in La Défense. Société Générale ...
, received a welcome bonus of €500,000.


Bonus 2010

In 2010 Dexia announced its plan to provide CEO with a bonus of €600,000. For
Jean-Luc Dehaene Jean Luc Joseph Marie "Jean-Luc" Dehaene (; 7 August 1940 – 15 May 2014) was a Belgian politician who served as the prime minister of Belgium from 1992 until 1999. During his political career, he was nicknamed "The Plumber" and "The Mineswee ...
a remuneration was planned of €88,000. The allotment of high bonuses at Dexia and competitor KBC caused some commotion in Belgium. Leading the city of Ghent to remove some €30 million in short term investments from Dexia and KBC.


Buildings


Dexia Tower

The Dexia Tower, the firm's new head office in Brussels, is with its height of 137m an icon in the business district of Brussels-North. In December 2006 the tower was equipped with LED lighting. A total of 126,000 programmable LED strips have been fitted. From 22 December 2006 to 15 January 2007, the colours of the tower could be chosen by the public from a
touchscreen A touchscreen or touch screen is the assembly of both an input ('touch panel') and output ('display') device. The touch panel is normally layered on the top of an electronic visual display of an information processing system. The display is ofte ...
. It was spin-off and occupied by Belfius (ex-Dexia Bank Belgium).


Tour Dexia

The Tour Dexia at
La Défense La Défense () is a major business district in France, located west of the city limits of Paris. It is part of the Paris metropolitan area in the Île-de-France region, located in the department of Hauts-de-Seine in the communes of Courbev ...
, previously known as the CBX tower, is the bank's Parisian headquarter since 2007.


See also

*
List of investors in Bernard L. Madoff Securities Investors in Bernard L. Madoff Investment Securities LLC lost billions of dollars in the Madoff investment scandal, a Ponzi scheme fraud conducted by Bernard Madoff. The amount missing from client accounts, over two thirds of which were fabricated ...
*
Panama Papers The Panama Papers ( es, Papeles de Panamá) are 11.5 million leaked documents (or 2.6 terabytes of data) that were published beginning on April 3, 2016. The papers detail financial and attorney–client information for more than 214,488 ...
* Rogier Tower


References


External links

*
Dexia Crédit Local France
{{Authority control Banks of Belgium Banks of France Banks established in 1996 Government-owned companies of France 1996 establishments in France Banks under direct supervision of the European Central Bank Companies listed on Euronext Brussels Defunct banks of France