The Source Of The Rally

From the BBC:

Dexia bank gets massive bailout

France, Belgium and Luxembourg are to bail out the troubled bank Dexia, following fears it could go  bankrupt.

The Belgian government will buy the bank's division in Belgium for 4bn euros ($5.4bn; £3.4bn). And Luxembourg's finance minister said a Qatari investment group was ready to buy the bank's Luxembourg unit.

Trading in Dexia's shares, which had been suspended, resumed on Monday afternoon. The price immediately fell 36% before recovering slightly.

The bailout plan for Dexia came after German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed Europe's crisis-hit banks needed to be recapitalised.

Dexia also secured state guarantees of up to 90bn euros to secure borrowing over the next 10 years. Belgium will provide 60.5% of these guarantees, France 36.5% and Luxembourg 3%, the bank said in a statement.

Belgian Prime Minister Yves Leterme told a news conference in the early hours of Monday: "We found an agreement on the fair division of the costs related to the management of the 'rest bank'."

The Belgian unit is a largely retail operation of 6,000 staff, handling deposits totalling 80bn euros for four million customers.

Dexia asked for help for the second time in three years after a liquidity squeeze sent its shares tumbling.

It had to be bailed out in 2008, with the Belgian, French and Luxembourg governments putting in 6.4bn euros to keep it afloat.

My View:
No wonder the Occupy Wall Street crowd is getting vocal.  Multiple bailouts of failing banks with taxpayer dollars.
These "too big to fail" institutions are too big to exist!