Dexia Sa (DEXB), the world's biggest lender to local governments, was thrown a 6.4bn euro lifeline ($9.2bn) today as the widening financial crisis forced governments to prop up institutions across Europe (Source: Bloomberg.com). Shares in the bank jumped as much as 21% in Brussels trading. This comes just two days after Belgium, the Netherlands and Luxembourg agreed to inject 11.2 billion euros into Fortis (FORB), the largest Belgian financial-services company, and whom we blogged on yesterday.
As of the close of business on Friday, 8.69% of Dexia's Market Cap was out on loan (%MCOL) to short investors, down from 9.57% on September 1st, as short sellers closed their positions, potentially ahead of today's jump in share price to 7.75EUR today. Utilisation is at 76%, which means it is extremely hard and possibly expensive to borrow this stock. There are 11 Days to Cover.