Dexia plans on ceding its American subsidiary FSA

Having benefited from a bail-out plan of 6.4 billion EUR (8 billion USD) financed by the French, Belgian and Luxembourgian governments, the banking group Dexia plans on ceding its American subsidiary Financial Security Assurance (FSA). Two American insurers, Berkshire Hathaway Assurance and Assured Guaranty stand among the candidates keen on the deal. FSA, a subsidiary company of credit consolidation which has sustained a loss of 752 million USD in the first quarter of 2008, has seen its “AAA” rating go down to “AA-” by the rating agency Standard & Poor's.