PIGNAL: This is actually the second bailout for Dexia. In 2008, it had to be bailed out after exceptionally imprudent investing, including in U.S. subprime mortgages. This time around, it was basically dealing with the legacy of the past, and it was trying to do what it could to get back into safer waters. But with the Eurozone debt crisis in the past year, it basically ran out of time.
SIEGEL: Yeah, that was the past. This is now. And if the 12th most secure bank in Europe just collapsed, does that mean that several more bank collapses are in store? [idiocy emphasized by me]
This is what happens when you try Extend and Pretend while leaving the Management (think Pandit, Moynihan) who screwed up in the first place in charge of the burning building.
Anyone stupid enough to hire Robert Siegel as a “financial reporter” should be defenstrated with all deliberate speed.