QIA Set To Buy Dexia’s Luxembourg Bank

Dexia Group’s Luxembourg retail banking division may be acquired by theQatar Investment Authority,The Wall Street Journalreports. The Luxembourg government will hold a blocking minority stake inDexia Banque Internationale a Luxembourg.

The sale is part of an effort to break up the Belgian group afterMoody’s Investors Servicecautioned that the bank’s dependence on wholesale funding threatened its stability. Dexia will also have to offload other units under the plan, including its asset management business andDenizBank, the Turkish retail bank.

Click here for the story fromThe Wall Street Journal.