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Belgium considers new bank bailout

Belgium said Wednesday it is considering a new bailout for its ailing banks after shares in two major lenders fell dramatically.
/ Source: The Associated Press

Belgium said Wednesday it is considering a new bailout for its ailing banks after shares in two major lenders fell dramatically.

KBC, one of the healthier Belgian banks and the last to seek government help last year, has seen its share value drop 70 percent since Friday.

The government on Wednesday commissioned an analysis by a management committee to allow it "to possibly take new measures," suggesting it could agree upon a new bailout for banks.

Belgium's largest bank, Fortis, was dismembered last year after government action and recapitalizations failed to calm investor fears that it could not cover its debt. KBC and another bank, Dexia, also swapped a stake for government money to help them ride out the financial crisis.