like dexia, french banks are exposed to french debt. the french president nichololas sarkozy and angela merkel met over the weekend. this is a pivotal plan. fred pleitgen is following that story. we seem to have no detail yet. >> there's a deadline and a promise that was made by french president nicolas sarkozy that they'd come up with a comprehensive package to shore up the european currency and indeed the european economy as well. that they would do that before the next g20 summit which, of course, is going to take place in france in cannes on the 3rd and 4th of november. they set up a deadline and a promise. it's not clear what will be part of that package. if you talk to analysts and people on the ground they'll tell you it basically consists of long term and short-term measures. both sides, angela merkel and nicolas sarkozy said they were committed to recapitalizing european banks. there was some discord between the two leaders as to how exactly that is supposed to happen but the long-term measures could entail some european treati

that's true john the same way that dexia is crucial to the european voting system that's true but it doesn't negate the fact that they are pirates well custer is rumored to be picking up the best assets for. her right of course carter is going to be. any worse that other frickin saudi guy he's always pick and things of the absolute top reason worst stockbroker than ever lived no but this is what's happening throughout we've seen throughout the european crisis is real assets real genuine good quality assets get handed a fire sale prices to insiders to the elite the bad assets which are not actually assets but debts that will never be paid back and so therefore are just black holes of nothingness they get handed to the taxpayer so it's confusing like you said the word assets is a confusing term and at the same time they vilify the word commodities. worthless meanwhile they're taking the essence that is nothing but dead to buy the good stuff that they think stinks so again fighting this banker occupation is occupy wall street so i want to turn to this next have imax john custom and ther

let's move to this next headline another bailout another break up another toxic bank across europe dexia board meets us france belgium tussle over troubled assets so you know belgium has bailed out the belgian arm of dexia which is now threatening a downgrade of belgium so again throwing the population throw an entire nation the existence and credit of a nation to save a group of bankers but i want to quote from this headline from bloomberg just the managing perception angle of this rescuing dexia the first victim of the debt crisis at the core of europe has become critical to preventing contagion in the region's banking industry again the managing perception rescuing dexia is absolutely necessary for the survival of human beings right they. whole thing the brothers collapse in the best turn collapse when they got the rescue we now know that would have been better off had they allowed the bad banks to go bust they were more attentive to the needs of the underlying competitive economy but now europe is making the exact same mistakes rescuing dexia at the expense of their competitive econo

dexia's share pries taking a hammer. it was down in excess of 25%. and that means that a nosedive so far this year. bnp paribas and societe againe is down and ubs and credit suisse down 2% so they're feeling the heat on the back of the ongoing concerns over greece. >> the banks getting hit and not the to mention the banks ov overnight in the u.s. faking a hit. first, doesn't this look familiar. losses across the board. shanghai is not here because the market there is closed for the national holiday. elsewhere the debt crisis continuing to weigh pretty significantly on the markets. the kospi had been down well over 5%. closing down by 3.6%. was playing catch-up. closed for korea's national holiday. nikkei lost, 846,000 yen, above its low it hit after the quake and tsunami sydney. down another 2/3 of 1% and the hang seng down.64%. there was one ray of sunshine here in hong kong. that was the casino stocks that are listed here. several of them bucking the trend. but remember this comes after big losses yesterday. some of these companies down between 11%

it is suing dexia for fraud. some say the town should learn to live within its means. ♪ >> iceland was the first country hit by the financial crisis. three years ago, it was virtually bankrupt. the citizens were facing a mountain of debt. the banks were nationalized to protect them. the people are pulling together and fighting back, doing whatever it takes to get the country back on its feet, and succeeding. >> his children enjoy every minute they get to spend with their father. during the crisis, he had to stop taking education classes and start working seven days a week as a taxi driver. >> i live for my children. i want to watch them grow up and develop. that is why am trying to stay positive. i do not want them to feel the crisis. i try to protect them. >> it is a daily struggle to make ends meet. over the past three years, they often did not know how they would pay the bills. the crisis took a toll on their family and relationships. many of their married friends have gotten divorced. >> it makes me crazy to

now think dexia. the european bank is in talks amid fears it will crash. >> it started as a sovereign debt crisis. because of fears of whether banks are strong enough to withstand losses, it is now the banking crisis. >> all in all, the financial sector is getting beaten. the only solution is to go into default. >> they have serious confirm mentality. -- bunke mentalityr . >> there's a lot of talk about what is at stake, but not a lot of fixing. >> everyone understands it time is running now for the year rose zone to resolve the crisis. we did make -- for the euro zone to resolve the crisis. we did make progress. it confirms my view we are doing damage to the british economy. indeed it is doing damage now. >> the first bank in crisis is the french and belgian bank dexia. what has made it so vulnerable is it is heavily dependent on borrowing to the tune of 250 -- 240 billion pounds. in times of high anxiety, those sorts of creditors will not lend and often want their money back. if a bank cannot borrow

we have known that dexia was going to need to be recapitalized for some time. what has happened tonight has proven that once these dominos start falling, once the crises start happening, governments have to move pretty quickly to protect deposits, to protect ordinary people and crucially, fredricka, to make sure that contagion, it doesn't spread farther. >> dominos start falling. so what kind of ripple effect might this cause here in the u.s.? >> reporter: i think the first ripple effect you will see and it already is being seen, nothing revolutionary in what i'm saying, is that american banks, u.s. banks won't want to lend any european market. they won't want to be caught short, if you like, because this is what happened with lehman brothers. everybody was worried, what did the other bank happen, how much debt was it that you didn't know about? it is called counterparty risk. thereafter, you start to see things really very murky. the banking system is one giant spider's web. when you start pulling strings of it and the thing falls apart pretty quickly. >> all

dexia is forced to ask for help from the government.at has led to concerns that belgium is in too much debt. it is also happening with other european banks and countries. the sovereign debt crisis has become a banking crisis. it is spreading. president sarkozy and chancellor merkel met this weekend. they're still working to help struggling countries and banks. political differences are holding back implementation. european leaders were due to meet this time next week in brussels to find a way through the crisis. that has now been postponed, another sign of how elusive a solution is becoming. investors are getting more worried. europe's leaders once told them the stress tests had worked. dexia passed their tests. people are losing patience. other banks may come into trouble as well. greece, more strikes are crippling the country. they are waiting to a solution that the word -- -- waiting for a solution to the worst crisis the e.u. has ever faced. >> economic problems are hardly isolated to eurozone. the occupy wall street movement is sti

dexia needed bailing out, and not everybody was happy. >> it is my money. it is also my money. >> they have to save them, said this man. the question is, how did they get into this mess? the banks, the belgian government, and leaders knew this needed to be done to avert a greater crisis. >> it is clear that the crisis of the banking sector pushed the government in this position. we have to intervene to face a problem, which would have a systematic effect on the economy. >> at their headquarters today, it looks fairly, , but it is what is going on inside the bag that exposes how close we could be to a second credit crunch. dexia had loaned a lot of money to greece, and agrees cannot pay that back, is another company needs a bailout, and this in turn is making some investors concerned that belgium is in too much debt. this is not just happening there. this is happening with other european banks and countries. it is a banking crisis, and it is spreading. president sarkozy of france and angela merkel of germany met this week. they are still working on the facil

it's a familiar story for dexia which was bailed out back in 2008. those two countries' finance ministries just yesterday said that they would take, quote, all necessary measures to protect the bank's customers. dexia's stock price has been plummeting about 22% yesterday in brussels. as you can see, though, this is how it's trading at the moment. it's bouncing back just slightly today in france, as you can see, up by about 4% at the moment. the governments of france and belgium are taking some steps to contain the crisis. it's still down by about 61% so far this year. the stock. and they've also written a comprehensive blog if you want to read up on that topic, you can access my blog at cnn.com/biz360. let's look at how this is affecting the currency markets. we had the eco meeting yesterday of the euro zone finance ministers. the euro's actually down by about one-fifth of 1% against the u.s. dollar, and that's thanks to talk to the european central bank will be implementing a fresh set of stimulus measures to boost the struggling economies. the doll

this is dexia, the troubled bank. not just in greece and italy. cities in america have serious debt problems, not waiting for it to develop, but will develop over the next few months, i think. what we heard today is qatar is possibly going to by the luxembourg operation from dexia. private investors seem to be coming out of the woodwork, ready to invest in some of these. nicklas back to the question as to who is going to whip -- recapitalize the bank? we are seeing private investors interested as well. it will be a very complicated solution that will take a long time to work out. >> thanks very much. it is exactly 100 years since the revolution in china since the country's last emperor. the party seems reluctant to celebrate this special anniversary. here is the report from beijing. >> beijing's forbidden city, this palace, home to china's emperors for five centuries. ordinary people could not even get a glimpse of what went on inside. but the revolution 100 years ago ended the the reign of the last emperor of china. what was once reserved for the

shares in dexia have plunged to penny status.the suspension followed reports that the sovereign wealth fund of qatar is in exclusive talks to take over the luxembourg facility. the belgian army is to be nationalized. the healthy divisions will be sold off to help finance a bad egg floated with troublesome assets. barack obama has warned europe's problems could have a real impact on the u.s. economy. he said it was therefore even more important that congress pass his 447 billion job creation bill. >> our economy needs a jolt right now. this is not a game, the time for the usual political gridlock. the problems that europe is having could have a real effect on our economy at a time when it is already dragging. when this jobs bill can help guard against another downturn if the situation gets worse. this will boost economic growth, put people back to work. >> let's take a look at their day's market action starting off in frankfurt where the blue chip dax finished with gains of more than 3% up at 5645 points. the euro stoxx 50 followi

france, belgium, luxembourg announced to bail out the troubled bank dexia. we have more details. >> the european union and the euro, consummate european economies with huge debt to be forced out of the euro? that crisis became more acute when a huge bank was -- struggled to borrow and faced possible collapse. >> it is clear that the banking sector crisis give government a difficult choice, to intervene or face a problem with all of the bank customers? that would have a system of the fact on the belgian economy. >> dexia is big, roughly the size of the entire greek banking system. it is being broken up. the taxpayers are providing 90 billion euros to support the debt. euro zone leaders led by the german chancellor and the french president have recognized some of your's biggest banks need strengthening. they need more capital for the protection against losses on loans to >> of greece. as the greek back -- greek economic mess worsens, one solution may be on the way. goodness only knows what will happen if it does not get moving. >> the government has failed to

meanwhile, france, belgium, and luxury emborg will be bailing out dexia. as robert peston reports. should some be forced out of the euro by the financial crisis? that became acute when a large bank with big loans struggled to borrow and faced possible collapse. >> it's clear that the banking sector crisis gave governments a difficult choice, to intervene or face a problem with the customers. >> it's big with loans and liabilities with more than 500 billion euros, roughly the size as entire greek banking system. it's being broken up. the taxpayers of belgium, france, and luxembourg are providing up to 90 billion euros to support dexia's debt. euro's leaders have recognized some would say belatedly that some of europe's very biggest banks need strengthening. they need more capital as a protection against losses on loans to the likes of greece. as the combreek economic mess worsens, one sign the ambitious e.u. solution may be on the way is that the summit of european leaders has been postponed. goodness only knows what will happen if greek buses and the euros rescue convoy don't get m

dexia. >> a good example. it is interesting to read -- this is silly for me to read the markets, because it is the struggle. you do this every day. tell me. the markets bounce back this morning. really positive for a brief period of time. we are told because of a sense that there may be some recapitalization for banks. but they have sunk back again. what is going on? >> first of all, and i will talk about why they are up, but we have seen as quite regularly with the markets over the last several months. we have seen of saul and the bounce back and bargain hunting. the markets are up on the top because we have a euro-zone problem, the markets are up on the question -- will there be a euro-zone tarp program? that was the u.s. federal reserve program during the financial crisis where the pump close to $1 trillion in to pretty much every bank collectively in the u.s. to strengthen them for a just in case scenario. this is what's being called a bucket of sand that would be needed to douse the fire and the crisis th

. >> so it seems like an awful lot is being done to make sure dexia is secure. why this bank?ouldn't this be an institution that would be allowed to fall by the wayside as a result of its troubles and why is so much being done to save it? >> good question. and simply put, because it's a big bank across france, belgium and luxemburg. it's a retail bank, the equivalent of a chase or a bank of america or a wells fargo. it actually has branchs with people that go in to do banking. so what they've done is they've taken those parts of the bank and they are going to sell them off and put them into government ownership or nationalize them. depositors will be safe. the ordinary men and women are okay. you take the investment bank. what you don't want, you really don't want the investment bank to fail. why? because a big investment bank failing this particular time would cause a ripple of crisis of confidence and that's what happened with lehman in 2008. we're going to see more banks over the coming weeks whether they fail or not, they're going to need more money. what the authorities w

never heard of the bank dexia?cant to you because in the u.s., dexia has been a big backer of many local u.s. government bonds and loans. >>> gas prices are dropping. in the past month the average price down 24 cents. the main reason, of course, decreasing oil prices. as of this morning, the national average is $3.42 a gallon. >>> sony reportedly bought the rights to make the authorized biography of steve jobs into a movie. this is a cording to the "new york times." the book titled "steve jobs" by walter isakson is set to be released october 24. >>> check out the all-new cnnmoney.com for more. >>> "american morning" will be right back after a very quick break. [ male announcer ] theraflu, mucinex, lysol disinfectant spray and...a toy drum. hiya folks, so the other day i tried to buy some camouflage pants but i couldn't find any. [ rimshot ] thank you, thank you i'll be here all week. in fact, i'll be here for the next 18 years. [ rimshot ] is this really necessary? come on ma, laughter is the best medicine! i'm jus

meanwhile, the president of dexia has accepted a plan developed in luxembourg. investors will also get third quarter results this week from the likes of pepsi co.google and jp morgan chase. the government will weigh in this week with its take on september's receipts. >>> a sobering new study finds household income declined more in the two years after the recession ended, some 6.7%, than it did during the recession itself when income fell just 3.2%. now to some good news. the latest lyndburg survey says the latest price of average gas that's dropped 13 cents over the past two weeks to $3.42 a gallon. >>> finally, hats off to john wayne whose movie memorabilia brought in more than $5 billion. wayne's green better rret fetch $102,000 while one of his cowboys sold for $119,000. very nice. >>> the national league championship series gets under way and golf great tiger woods has a bizarre run-in. >>> plus, giants receiver victor cruz makes an incredible catch. and then it all goes downhill. your early morning sports headlines are straight ahead. >>> it was an amazing

it says dexia has become the first casualty of the 2011 banking crisis. there you have it.ed. and we're here. >> don't like the sounds of that. christine romans, thank you. >> see you in a bit. you're welcome. >>> they've been springing up in cities across the nation, those massive protests. just ahead, why some republican presidential candidates say some demonstrators are going about it the wrong way. >>> but first, today is columbus day, but there are three days that do not observe columbus day has a holiday. can you guess which states those are? here are your choices, a, california, nevada, and hawaii. b, arizona, california, and oregon. or c, california, nevada, and utah. the answer after a break. it's 36 minutes past. >>> 38 minutes past the hour. this is your "am: wake up call." today is columbus day, but there are three states that do not observe columbus day as a public holiday. can you name those three states? here are your choices once again. a, california, nevada, and hawaii. b, arizona, california, or oregon. c, california, nevada, and utah. the correct answer i

of the day on reports european officials will shore up their banks after bailing out belgian lender dexia. asian markets fell after moody's late day downgrade italy's credit rating and those worries could linger today. >>> yesterday ben bernanke warned congress the economic recovery is, quote, close to faltering. some were relieved to hear the central bank may take more steps to stimulate the economy. >>> apple's much anticipated iphone upgrade, the 4s model, boasts a better camera, faster processor and voice-activated assistant but still fell short of what many hoped would be a radically redesigned iphone 5. >>> ford made a tentative four-year deal with united autoworkers that promises thousands of new jobs and bonuses for active workers. >>> new york state is suing bank of new york mellon for $2 billion, charging it defrauded thousands of clients in foreign currency exchange transactions. >>> the first round of checks are being made today to guilted investor of ponzi schemer bernard madoff. >>> after the bell, piazza hut brand yum brands missed earnings. >>> rupert murdoch has requested

another supporting factor was the decision made by the french and belligian to split up dexia. this brought a sense of relief to investors. now let's take a economic on tokyo shares. as you know, u.s. stocks rallied due to optimism, so how is this affecting tokyo trading? let's go to the tokyo stock exchange. what are we seeing here in japan this tuesday morning? >> well, ai, let's look at the opening levels straightaway, and we can see how the nikkei and topix are opening up this tuesday morning. looking at the opening levels for the nikkei and to approxima pix right now. continuing the rally we saw in the u.s. markets rallying there that german and french leaders pledged to take firm measures including shoring up european banks affected by the region's debt problems that you mentioned there. also friday's jobs report in the u.s. gave more optimism. the next piece of economic data is retail sales, which is due up on friday this week. another focus there. let's not forget amidst all of this news we're entering earnings seasons and u.s. global companies come out with earnings st

russia's burbank is considering buying the turkish unit of troubled french belgian group dexia that is struggling to cope with its exposure to greek debt as is considering and as a source of those burbank say the deciding factor will be the price of the said but the acquisition would be consistent with the bank's well publicized plan to expand in central and eastern europe. and other news russia's top diamond producer are also plans to hold an i.p.o. at the end of twenty twelve soon after vice president of our roles that you get it quickly cheap so the company plans to privatized seven to ten percent of the company also says i was a restructuring now in preparation for listing a process to show fantastic results. appear to go to now in these pre-crisis volatile time we are in the ideal situation we are sitting on a big stack of money capitalization is better than before the two thousand and eight crisis and all sales volumes show it champions performance in the coming days we will publish or two thousand and eleven first draft report and we will post such figures as the company has nev

the board of dexia has accepted a rescue plan set up by france, belgium and luxen bourg.minium giant alcoa announce profits. and investors will get the results of pepsico, google, and jp morgan chase. >>> after retailers reported good back-to-school sales last week the government will weigh on in on takes from receipts. >>> household income declined more in the two years after the recession ended. some 6.7%, than it did during the recession itself when income fell just 3.2%. and now to good news, the latest lundberg survey says the average price of regular gas has dropped 13 cents over the past two weeks, to $3.42 a gallon. >>> finally, hats off to john wayne, whose movie memorabilia auction in los angeles brought in $5 million. wayne's green beret fetched $179,250. while one of his cowboy hats sold for $119,000. >>> and in health news, a new study suggests people who take dietary supplements are usually the ones who need them the least. most vitamin takers were eating well and getting adequate nutrients through their food. doctors caution overloading your body with nutri

having said that, dexia bank just been nationalized by the belgian government, so europe is not without banking problems. back to you. >> the front page of the "financial times" this morning, david cameron of the uk saying time is short for the euro zone. encouraging merkel and sarkozy to use what he calls a big ba zooka approach saying that europe has to avert disaster. >>> 2012 presidential politics, the presidential field shifting it's focus to religion. several candidates head to washington for the value voters summit, an annual gathering of social conservatives, texas governor ron paul ron the straw poll with 37%. perry came in second with 23% of the vote. what's grabbing headlines is the introduction of texas governor, rick perry on friday, by megachurch pastor, robert jeffers. the perry supporter made some controversial remarks to reporters. bringing massachusetts governor mitt romney's religion into the spotlight. >> rick perry is an evangelical christian. mitt romney is a good person, but he's not a christian. mormonism is not christianity, it's always been considered a cult. i

on tuesday, a rescue plan was agreed for dexia, a major financial group, based in belgium and france. the group has large holdings of greek, italian and spanish government bonds. european commission president jose-manuel barroso says the eu is proposing member states to take coordinated action. this may get rid of toxic assets they have. u.s. president barack obama has urged european leaders to act faster to tackle the ongoing sovereign debt crisis >> my strong hope is that by the time of that g-20 meeting that they have a very clear, concrete plan of action that is sufficient to the task. >> the group of 20 summit meeting will be held in kohn, southern france, in early november. >>> on thursday a majority of dutchmakers voted in favor of the measure, a fund to set up to provide emergency lending to eurozone countries with excessive debts. however concerns continue to spread, this prompted eu nations to try and gain parliamentary approval for extra funding. to execute the rescue plan, approval of all 17 eurozone countries is needed. thursday's dutch vote means that 15 of 17 eurozone m

cross over to europe where markets opened lower the continue to worry about the greek debt situation dexia let decliners would have fifteen percent drop out to media reports that it would split up by the end of two thousand and eleven along banks stores or bankroll three point eight percent of the start of the trading at will bank of scotland group dropped three point six percent . here in russia stocks are trading lower following losses on wall street triggered by concerns over greece's default let's take a look at some individual shareholders on them isaac this hour energy majors are trading in negative territory with ross now down over two percent coal miner was scots because among the main losers out there was posted weak results for the first half of the year and up the bosses before the slightly better than the market following reports saying it's received a record number of orders from its grant top model all linked much profit from the t.v. capital gives his advice on the current best bets on the market. so this was hard to hard to. there i think warren jeffs is probably your best

crossover to europe where markets opened lower as they continue to worry about the greek debt situation dexia let decliners with a fifteen percent drop after media reports that it would split by the end of two thousand and eleven along banks georgia bank fell three point eight percent at the start of the trading at will bank of scotland group dropped three point six percent . here in russia stocks are trading lower following losses on wall street triggered by concerns over greece's default let's take a look at some individual shareholders on the rise like this hour energy majors a trading in negative territory with wall snapped dollars over two percent coal miner response guy is among the main losers out towards posted weak results for the first half of the year and up the boss is performing slightly better than the market following reports saying it's received a record number of orders from its law to grant a model. from b.p. capital gives his advice on the current best bets on the market. so this was are hard to. think well and guess is probably your best choice. it's not a high beta play o

of the day on reports european officials will shore up hair banks after bailing out belgium lender dexiaer the down grade of italy's credit rating and those worries could linger today. yesterday ben bernanke warned congress the economic recovery is, quote, close to faltering. still, some were relieved to hear the central bank may take more steps to stimulate the economy. >>> apple's much anticipated iphone upgrade, the 4-s model, boastses a better camera, faster processor and voice activated assistant, but still fell short of what many hoped would be a radically redesigned a tentativ four yr deal with the united autoworkerses that promises thousands of new jobs and bonuseses for active workers. new york state is suing bank of morning mellon for $2 billion charging it deprauded thousands of clients in foreign currency exchange actions. and speaking of fraud, the first round of checks are being mailed today to jilted investors of jailed ponzi schemer bernard madoff. >>> after the bell, the pizza hut parent yum brands delivered earnings that narrowly missed estimates. the "wall street journ

considering buying debt is bank that's the turkish arm of the troubled belgian french financial group dexia the head of hair when graf says talks haven't started yet. that's all i have food this hour but i'll be back in less then in about forty five minutes with more business. will. be. wealthy british style sign post some time to. market. town and. find out what's really happening to the global economy with max concert for a no holds barred look global financial headlines two kinds of reports. in the first. square so it's a look at your hotels bangkok so i know i'm told frankel watergate hotel and princes hotel marriott cool job hotel bank suites hotel bank called the imperial queen. mary results in spoto in toto new supply and spun. golden cliff results and spun photo a one world cruise hotel discovery peach hotel children. the sea entrepreneur result. barracuda. hotel suites hotel. resort and spa. in israel ots available in cinema hotel. hotels jerusalem. breaking. two years in jail for abuse of power. between. going east. cooperation. for the president. taking a peaceful. report.