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French Government could nationalize Dexia.

The French Government is considering nationalizing the vestages of stricken Franco-Belgian bank Dexia, Les Echos reported on Friday without naming sources. Under a plan brokered in October, the French and Belgian governments would provide guarantees for a bid by CDC and La Banque Postale for parts of Dexia. According to the report, however, the deepening debt crisis could force up the price of these guarantees. "For Brussels, paradoxically nationalizing Dexia could be less expensive," said a person cited by Les Echos.

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