Open

Coming up

Don't miss

Replay


LATEST SHOWS

THE WORLD THIS WEEK

The World This Week - 01 August 2014 (part 2)

Read more

MEDIAWATCH

Coverage of Gaza in the Israeli media

Read more

REPORTERS

1914-1918: The Depths of Hell

Read more

THE WORLD THIS WEEK

The World This Week - 01 August 2014

Read more

THE INTERVIEW

Exclusive: Israel's US ambassador speaks to FRANCE 24

Read more

#THE 51%

World War One: The war that changed women’s lives

Read more

FRANCE IN FOCUS

Ségolène Royal goes for green

Read more

THE OBSERVERS

A look back at some of the Observers' best stories

Read more

DEBATE

Argentina Defaults: Kirchner Cries Foul Over 'Vulture Funds' (part 2)

Read more

  • Hamas denies capturing Israeli soldier as Gaza truce lies in tatters

    Read more

  • Exclusive: Israel's US ambassador speaks to FRANCE 24

    Read more

  • Police 'chokehold' caused NYC death, coroner rules

    Read more

  • Air France ground workers to strike on August 2

    Read more

  • Rogue general denies Islamist seizure of Benghazi

    Read more

  • Ugandan court strikes down anti-gay legislation

    Read more

  • 1914-1918: The Depths of Hell

    Read more

  • Regional summit to tackle deadly Ebola outbreak

    Read more

  • French hospital to open wine bar for terminally ill patients

    Read more

  • Video: Tipping is dying out in French café culture

    Read more

  • €2.5 million in cocaine ‘disappears’ from Paris police HQ

    Read more

  • Appeal court keeps French rogue trader Kerviel in jail

    Read more

  • Interactive: France’s new plan to counter jihadism in Africa

    Read more

  • Ukrainian army suffers losses in separatist attack

    Read more

  • Argentinian markets plummet following default

    Read more

  • French Jews speak of growing fear in Paris amid Gaza conflict

    Read more

French government denies major bank in turmoil

Latest update : 2008-10-02

France's employment minister has played down rumours that one of the country's major saving banks, the Caisse d'Epargne, was facing serious economic difficulties and seeking a 6.5-billion-euro bailout.

The French government sought to quash rumours on Wednesday that one of the country's major savings banks was dangerously exposed in the credit crisis and repeated a promise to protect the sector.
   
The Caisse d'Epargne firmly denied that it was in difficulty after the satirical weekly Canard Enchaine reported it needed a 6.5-billion-euro (9.2-billion-dollar) cash injection in order to cover its debts.
   
Employment Minister Laurent Wauquiez also came to the bank's defence.
   
"In terms of financial crisis, we are in a situation where any rumour is possible, and these kinds of rumours are completely destructive," Wauquiez said in an interview with Canal+ television when asked about Caisse d'Epargne.
   
"It's very easy to say that such-and-such an institution has problems. We're going through a very difficult period, so obviously all institutions could be threatened," he explained.
   
"The most important point is that the best guarantee for the French is that no saver will suffer because if any French institution has problems the state will step in," he said, repeating a government vow to protect depositors.
   
The Caisse d'Epargne bank is popular with individual French customers and usually regarded as a safe home for family savings and retirement nest eggs.
   
But the bank has an interest in two subsidiaries, property group Nexity and investment bank Natixis, which have come under the spotlight since the storm created by the US credit crunch spread to European financial markets.
   
On Wednesday the French financial regulator AMF opened an inquiry into trading in Natixis shares, which have plummeted by more than 70 percent since the start of the year, amid allegations of illegal trades.
   
In the first half of 2008, the Caisse d'Epargne net profits fell by 98.5 percent to only 21 million euros.

Date created : 2008-10-01

COMMENT(S)