dimanche, 28 mai 2017
 

Questions raised by French banks exposure in Greek debt

Last week rumors flared up about the worrying state of French banks’ financial assets, specially the fears of Société Générale going bankrupt. Thanks, those rumors were further denied.

Still, the French Banks all-out-international option, starting to the 80’s, is now hitting back harshly. The choice of investing abroad, on an international scale rather that supporting creators and small businesses, the truly creators of wealth, coincide with the arrival of the socialist in power in France - after being kept out of it for nearly a quarter of century.

The symbol of that socialist’s new wave conquest was Mr. Bernard Tapie, the businessman the actual managing director, Christine Lagarde, "helped" to recover some money accounting to trial damages against Credit Lyonnais. Mrs Lagarde has intervened in the file as the French Financial Minister. 285 million euros granted to Mr. Tapie for a prejudice of 15 years of trial. The deal could reach 400 million euros.

The decision is now questioned for its seemingly procedural irregularities we would not enter in here, for the IMF was perfectly aware of the issue prior to appointing Mrs Lagarde as it head. Therefore, pursuing Mrs Lagarde inevitably hits back the entire IMF process of recruitment we won’t get back into. This is a done deal. We respect it. Moreover, if we keep on following that way, we will then confront an embarrassing situation of another scandal concerning a chief of the IMF motivated this time by money. The previous IMF chief, Dominique Strauss Kahn was obliged to step down for a sex scandal. Unless you are interested in another drama, the question would end in a stalemate.

Anyway, the credibility of the French choice of candidates poses a problem that rebounds on its banks’ choices.

The big 4 French Banks (BNP Paribas, Société Générale, Crédit Agricole and Crédit Lyonnais) international bids were made at the expenses of home investors support. French Banks failure to empower small businesses and people in order to give them the audacity to create and, in the process, changing the French sparing reflex into a more risk taken involvement at home is just making their international vows bigger.

This is a double failure. The only secure way back left for them remains the guarantee of the French State.

French is heading towards an increase of taxes. Guess what ? The tax on large fortunes has been suppressed. Recently. In a period of inflation automatically generated by the euro, a possible remake of a previous bailout of Credit Lyonnais that has already gone bankruptcy in the 90’s partnering with Mr. Tapie in the mishandling Adidas acquisition, is precisely What makes the irregularities claimed against Mrs Lagarde decision in favor of Mr. Tapie unbearable.

History is a rerun.

 
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