[3] In 2008, the bank entered severe financial difficulties and received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis.

Due to big losses, suffered among others from the debt haircut on Greek government bonds, its Common Equity Tier 1 (CET1) capital ratio became negative during the second half of 2011,[citation needed] and an orderly resolution process began in October 2011.

[10] The price of the Dexia share, having peaked above €20 in the previous years, but gradually fallen to around €10, dropped in one day to €6.62.

This support was assured within days, taking two forms: The three states have the potential to make a profit from their intervention: Since Dexia had a New York banking office they were eligible for various bailouts from the US Federal Reserve.

A further restructuring plan was announced, with the firm aiming to concentrate on its primary activities, and to avoid risks on the financial markets.

On 31 March 2010 Bloomberg reported that Dexia was one of the largest borrowers from the discount window of the United States Federal Reserve, having outstanding loans of over $30 billion.

[19] On 6 February 2010 Dexia could announce that the European Commission had, under certain conditions, approved of the restructuring plan that was necessary to justify the government support for Dexia and to prevent unfair competition:[20] Vintage retail activities represented a bigger share in profits again in 2010; apart from Belgium and France, Turkey became very promising in this area.

[23] This was presented for La Banque Postale as an investment at market conditions, and as an extra source of liquidity for Dexia.

Part of its French operations are likely to be purchased by Caisse des dépôts et consignations and La Banque Postale.

[32] ECB officials agreed on Thursday 22 May 2014 that Franco-Belgian bank Dexia would not have to demonstrate it could bear a financial crisis in a Europe-wide stress test, reducing the chances of it needing further state aid.

The ECB had already acknowledged Dexia's "specific situation", with an assessment of its finances carried out over its 2011 wind-down plan.

[citation needed] The Comprehensive Assessment completed in October 2014 ahead of the entry into force of European Banking Supervision suggested Dexia had a capital shortfall of €340 million.

A subsidiary, Dexia Asset Management changed its name to Candriam following its acquisition by New York Life Investments on 3 February 2014.

[34] In 2015 Dexia announced that it would suffer from the possible default of Heta Asset Resolution, a bad bank from the residual of Hypo Alpe-Adria-Bank International.

Previously Carinthia had guaranteed the subordinated bond but later Austrian central government, as instructed by European Union, could not provide any more state aid.

Moreover, Financial Market Authority of Austria used the power given by EU Bank Recovery and Resolution Directive, which bail-in the shareholders and subordinated bond holders.

The asset leasing affair left Dexia in The Netherlands in the end with so much negative publicity that it decided to reduce its Dutch activities.

In 2004 Kempen & Co was sold for about €85 million, a fraction of the buying price, to its management, the Friesland Bank, NPM Capital and HAL Investments [nl].

According to research[45] of Netwerk Vlaanderen Dexia in 2005 together with AXA, Fortis, ING and KBC invested over €6.6 billion in companies that were involved in human rights violations.

This provoked protest from the French president Nicolas Sarkozy, and Miller subsequently renounced his bonus, leaving the matter to "the wisdom of the Board of Directors".

[51] Philippe Rucheton, the financial director appointed by Dexia in April 2009, coming from Société Générale, received a welcome bonus of €500,000.

[53] The Dexia Tower, the firm's new head office in Brussels, is with its height of 137m an icon in the business district of Brussels-North.