Dexia to Get Cash Infusion of $9.2 Billion - TheStreet

Dexia

will receive a state-backed rescue of 6.4 billion euros ($9.2 billion) after worsening financial markets drove the shares to a record decline,

Bloomberg

reports.

Belgium's federal and regional governments, France and the company's largest shareholders will supply the funds, according to a statement from Belgium's prime minister Tuesday.

Dexia is the world's biggest lender to local governments, according to

Bloomberg

.

The capital infusion for Brussels- and Paris-based Dexia comes two days after Belgium, the Netherlands and Luxembourg injected 11.2 billion euros into

Fortis

, a Belgian financial-services company. That rescue was in addition to Britain's decision to seize

Bradford & Bingley

, and Germany's bailout of

Hypo Real Estate

.

This article was written by a staff member of TheStreet.com.