Capital punishment

15 October 2008 By Pierre Briancon

The country s bank recapitalisation plans are short on detail, unlike the UK and US. Markets punish those rumoured to seek help, so banks are saying they don t need it even if they do. To reduce uncertainty and wrangling, the French should be more specific.

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France's three largest listed banks, BNPParibas, Société Générale and Crédit Agricole, have said they didn't see any need for a governmentfinanced recapitalisation, after France joined other European countries earlier this week in a massive and coordinated bankbailout program.

Francois Fillon, the French prime minister, on Wednesday suggested otherwise. While admitting that French banks were more robust than their European competitors, Fillon said he was "certain" that they would "need more capital to face (the) new competition"created in Europe by governments' rescue of ailing institutions.

Shares of BNP, SocGen and Credit Agricole are down 1.2%, 2.5% and 3.9%, respectively, since the Friday before the European bailout plan was announced.

Context News

Shares of BNP, SocGen and Credit Agricole are down 1.2%, 2.5% and 3.9%, respectively, since the Friday before the European bailout plan was announced.

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