French banks have accepted the 10.5 bn euro bailout of the government in exchange for guarantee on lending to households and firms. Officially, these 10.5bn are going to help the economy but in reality it's for saving the french banks.
The 10.5bn is divided into 6 french banks:
- Credit Agricole with 3bn
- BNP Paribas with 2.55bn
- Societe Génèrale with 1.7 bn
- Crèdit Mutuel with 1.2bn
- Caisse d'Epargne with 1.1 bn
- Banque Populaire with 950 million
One week ago, Crédit Agricole annouced in a statement that the bank is really strong and in good health. CA also said that "CA doesn't need any help".
In the same way, BNP Paribas, which appears like the most strongest bank in France, has accepted one bit of chesse...
It's a compleate paradox because french banks want to show that they are solid, but in reality when the government proposes a bailout, all of these "solid banks" accept...
Is it strange, isn't it?
2 commentaires:
It is actually very interesting but I think that the French banks also sound very strong but in fact are not. Do BNP which had a profit of 7 billion euro last year really need recapitalisation ? It is strange indeed.
BNP Paribas is actually a strong bank with a good rating notaion (AA+). But the bank has accepted the bail out in order to save the french economy and also to obtain money easily in a context of financial crisis.
I mean, the bank is strong and with this bail out, the bank will be more strong and in this way, BNP will help better the economy.
With its strong results, BNP stays the most powerful bank in France.
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