Europe scrambles to save banks from meltdown

PARIS, September 30, 2008 (AFP) - As the shockwave from the US financial meltdown battered Europe on Tuesday, governments scrambled to shore up fragile banks and restore confidence to flighty stock markets.
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In Paris, President Nicolas Sarkozy held a 5:00 am emergency meeting of his top economic team as France, Belgium and Luxembourg agreed to inject 6.4 billion euros (9.2 billion dollars) into the beleaguered bank Dexia.
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"Our ambition was to have very strong political involvement in order to send a signal to the markets," Belgian Prime Minister Yves Leterme told journalists in Brussels after the deal was reached.


Despite their intervention, the failure of US lawmakers to agree on a cash bail-out plan for failing banks panicked Europe's markets, in the wake of a rout across Asian markets and on Wall Street overnight.


London's FTSE 100 plunged on opening, briefly recovered and yoyoed between a loss of three percent and a gain of 0.77 in morning trades.

Frankfurt's DAX 30 slid 2.19 percent to 5,679.67 points on opening and in Paris the CAC 40 tumbled 1.96 percen

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