Listening to Queens songs at the moment. I miss Freddie.
Talking about banks, I hear that Dexia speculated with sovereign bonds from the south of Europe. For example, they bought Greek bonds at a discount last year, write them on their books as risk-free, record the profit at year-end 2010 and... :drumrolls: grsnting handsome bonus to top management and insiders. When Greek bonds become even worse and Dexia is credit-constrained and cannot raise fresh capital, go bankrupt and leave the price tag for the Belgian taxpayers.
And I can only wonder how many bodies are buried. What a mess...
Tell me about it. And our tax pressure already is sky-high.
It's utterly disgraceful what happened there.
The weird part is that it's a franco-belgian bank since the 2008 crisis with both sides needing to revamp and restructure. The Belgian side did just that and were back to health. The French side didn't and were in deep financial trouble so their solution was to channel the Belgian profits to the French side which was not enough to cover their losses and left the Belgian side deprived.
(the sad, sad part is that a similar scenario takes place in another franco-belgian bank BNP Paribas Fortis. Belgian profits flowing to cover losses in Paris)
Those bonuses given to top management: one of them said in April this year: "we deserve it".
You have to have some nerve to say that.
To make matters worse, the Belgians offered a garantee of 54 billion euro for those bad bonds and the French only 33 billion euros. I have no idea how spineless exactly the Belgians were and how this can be seen as fair.
Bunch of utter mugs running this country, I'm telling you.
And we still don't have a government about 530 days after the elections and yet, the flipping Italo-Belgian leading the negociations "wants more time".