Le Figaro Discloses France Has Prepared An Emergency "Just In Case" Nationalization Plan For "2 Or 3" Banks

Submitted by Tyler Durden on 10/05/2011 18:27 -0400

There are three phrases the market never wants to hear. Ever. They are "contingency", "just in case", and "only." Alas, it just got all three of them in an article just released by French Le Figaro which, per Bloomberg, has disclosed that "France has been working for a number of days on a plan that would allow the state to take a stake in the country’s financial institutions if needed, Le Figaro reports, citing a source. The plan, the article continues, is being prepared “just in case” it’s needed and only 2 or 3 banks may be affected under plan." So, let's get this straight: France has scrambled to put together a nationalization plan to bail out just "2 or 3" banks, "if needed"... Uhhh, all we can say to this is, LEEEEEEEROOYYYYYYY JENKINS. Although the person we would most love to hear say it, is the person who until two months ago was the French minister of finance and currently head of the world's most irrelevant and disorganized organization.

Full Google Translated story:

Paris prepares a plan to help its banks

The Agency for State Holdings (EPA), meanwhile, has been working for several days in a scheme that would allow the French to enter the capital of financial institutions.

In the heart of summer, the little phrase from the Executive Director of the IMF, Christine Lagarde , the need for recapitalization of banks in Europe had created an uproar on this side of the Atlantic, both in government than among bankers. In France, especially, we stick tooth and nail for several weeks this summer's strategy, namely the implementation of the plan to rescue Greece from July 21 will address concerns and to redress market the situation.

But according to our sources, Paris is ready to act. If the level of European support-which must still be approved by some national parliaments, provides that the EFSF to recapitalize banks, the agency of state ownership (EPA), meanwhile, has been working for several days in a diagram that would allow the French to enter the capital of financial institutions. "It's just in case ..." said a source familiar with the matter. Unlike what happened in 2008, which had pushed Bercy that all banks should call the financial office that had opened so that no-it-is stigmatized, only "two or three banks "This time would be affected by the device. "We're not in the same situation three years ago," says another source. And today, some are not willing to "pay" for others.

The Ministry of Economy, which is feared to fuel distrust of markets, it ensures that no recapitalization scenario is under consideration.

Controversy over the "AAA"

Whatever the option chosen at the end, France will act in any case keeping in mind that it is under the eye of the markets. Wednesday, after the announcement of the guarantee provided by the state borrowing by Dexia, the controversy over its continued financial rating "AAA"-one that enables it to borrow on the markets with the best price was great. This is Laurent Fabius who opened hostilities on the consequences of the guarantee provided by France. For the former Socialist prime minister, if the State "turns it on its back, it means that our triple A will not be comforted." Europe 1, he found the issue "very worrying". François Fillon has dryly responded, asking "several times to turn his tongue in his mouth before using expressions that are not accurate." The Prime Minister tried to reassure the public, adding that the state guarantees to Dexia will be "paid". However, he acknowledged, "no one can say in advance that this guarantee will cost the French taxpayer, although naturally each guarantee operation, there is a risk."

The Minister of Economy, Baroin, agreed meaning to the microphone RTL . "It will not increase the debt of the French state since, according to Eurostat, which is the body ESS, all the guarantees to banks are not included in public debt." Reasoning is true, as they are not lacking ...

But it is a rating agency who has probably the most reassured Wednesday: "It is clear that increased financial commitments is not a good thing, but efforts to support the banking system can be positive" and strengthen its note, assured Maria Malas-Mroueh, an analyst at Fitch Ratings in charge of France.

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Wed, 10/05/2011 - 18:31 | 1743155 slewie the pi-rat

remember the maginot, BiCheZ!

Wed, 10/05/2011 - 18:38 | 1743187 redpill

Seulement deux ou trois banques, pourquoi pas tous?

Wed, 10/05/2011 - 18:41 | 1743206 slewie the pi-rat

L0L!!!

MANGEZ-MOI!

Wed, 10/05/2011 - 20:18 | 1743603 Manthong

Heck, the Euro-Brits over at FT know how to deal with a little French complication.

Maybe an encouraging word in the Lex column can send the S&P up another hundred points.

http://www.youtube.com/watch?v=A8yjNbcKkNY

Wed, 10/05/2011 - 21:15 | 1743807 Ahmeexnal

Sacre bleu, Deux-Deux!!

Wed, 10/05/2011 - 22:16 | 1743959 akak

Apres les banques, le deluge.

Wed, 10/05/2011 - 20:38 | 1743693 doomz78

On a oublie des autres 50 banque du monde. Qui qui va sauver Bank Of America, Jp Morgan et Citigroup? Estit de niauchons!!!! La Reserve Federale. Gagne de tata. Ils peuvent toutes manger mes fesses. Mes petits chouchou. Achetee de l'or et de l'argent. Achete du cuivre et de l'huile si vous vouler un epargne. Mes colices. Dormer bien!!!! muah.

Wed, 10/05/2011 - 18:43 | 1743213 max2205

Ah Shantee

Wed, 10/05/2011 - 19:02 | 1743282 nmewn

Chérie, j'ai rétréci les banques!

Wed, 10/05/2011 - 19:14 | 1743313 SheepDog-One

No problem, a quick crunch of the numbers reveals we have a 32.333% (repeating of course) chance of survival.

Wed, 10/05/2011 - 19:29 | 1743357 nmewn

So you're saying we have a 1 in 3 chance...with all this positive energy how can we lose? ;-)

Wed, 10/05/2011 - 19:30 | 1743364 Pladizow

Europe's mess explained in under 3 minutes: http://www.youtube.com/watch?v=LyePCRkq620

Wed, 10/05/2011 - 21:43 | 1743890 disabledvet

try this instead:

http://www.youtube.com/watch?v=63i0ncXiaXE&feature=player_detailpage

sorry...it's six minutes tho.

Thu, 10/06/2011 - 02:11 | 1744415 Mentaliusanything

Sovereign Debt explained for dummies

http://www.abc.net.au/7.30/content/2011/s3318934.htm

Yes its Clarke and Dawes again

Wed, 10/05/2011 - 20:28 | 1743648 The Big Ching-aso

This is fucking with my serenity.

Wed, 10/05/2011 - 22:33 | 1743990 I did it by Occident

une nouvelle bataille de Verdun?

Wed, 10/05/2011 - 23:11 | 1744072 MayIMommaDogFac...

MayIMommaDogFace2theBananaPatch's picture

quick number crunch -- 32.333% chance of survival.

+1000 LMAO

Wed, 10/05/2011 - 19:47 | 1743441 catacl1sm

Je ne pas me devoir.

Wed, 10/05/2011 - 20:13 | 1743580 Hulk

Voulez-vous coucher avec moi ce soir?

Wed, 10/05/2011 - 23:42 | 1744139 floydian slip

itchy itchy ya ya heya

moca chocolat-te ya ya

Thu, 10/06/2011 - 00:23 | 1744238 akak

Voulez-vous coucher avec moi ce soir?

Merci, mais non.

Wed, 10/05/2011 - 21:01 | 1743770 strannick

Avez-vous d'or pour mon Chunnel, Monsieur?

Wed, 10/05/2011 - 22:31 | 1743985 zorba THE GREEK

WTF Did I hit the Goggle 'translate to French button by mistake'

Wed, 10/05/2011 - 23:06 | 1744059 Prometheus418

It's all in good fun- I took way too much French in high school and college, and it never, ever gets used. Probably reads like pigdin at this point. Any excuse to justify wasting all those hours...

Thu, 10/06/2011 - 00:51 | 1744308 knukles

The waste problem is not that it doesn't get used. The problem is that it's French.

Thu, 10/06/2011 - 01:07 | 1744342 Ahmeexnal

Chinese is now more popular amongst language students.

Can't blame them. Chinese culture is far superior to french culture.

Wed, 10/05/2011 - 19:12 | 1743310 Two Towers AU AG

Well Moynihan just mentioned on Kudlow that "Bank is America is sufficiently capitalized and will not be impacted by the contagion should it arise out of Europe"..

Note: He did not say BOA does not have exposure to Europe... Probably ML has more history associated with its hey days...

Nor did he say Customers will get access to their online banking by endof day today.. :( :(

put together it means only one thing.. BAC is a deer with headlights reflecting in its eyes..

Wed, 10/05/2011 - 20:58 | 1743767 upWising

Just returned from Bank of America where I closed an sizeable account open for quite a few years. I waited while three other people did the same thing.

"¿ Why are you closing your account ?" the "Personal Banker" asks.

My sugar-coated response: "Your fee structure is crazy, Your stock price is crashing, your website is crashed, the bank is up to its blind eyeballs in derivatives, and I am skeptical that BofA is 'too big to fail.' I want to get out while the getting is good."

Personal Banker responds with a Wince, a painful grimace, a long contorted look of absolute bowel-driven agony and then.... "Well the Show Must Go On. ¿ How would you like your money, in 20's or hundred's ?"

My response: "I will take whatever is on sale." Account closed. FIve people waiting behind me, no doubt attempting to do the same thing.

Must just be a coincidence.

ALCOHOL, TELEVISION, ALL-YOU-CAN-EAT BUFFETS, BUT ABOVE ALL:::
FAITH IN THE SYSTEM

Wed, 10/05/2011 - 21:40 | 1743884 papaswamp

Unfortunately the fuckers have my mortgage so I can't close everything.

Wed, 10/05/2011 - 22:25 | 1743975 wisefool

Unfortunately if you just read the words, they have all US citizens mortgages.

I really wish Bill would have done bawney back in the day (instead of monica) and not had time to refresh the American Comunity Improvement Act.

Again, if you only read words, history will say Bill Clinton was the last president to create a national surplus. He just sold our land to the IMF and our Jobs to a giant sucking sound.

Thu, 10/06/2011 - 00:11 | 1744199 Oh regional Indian

The IMF had you long before BillyBob!

ORI

Thu, 10/06/2011 - 00:22 | 1744231 StychoKiller

They probably do not have your mortgage, they just service the loan -- just like they do mine (Freddie or Fannie owns my mortgage).

Wed, 10/05/2011 - 23:10 | 1744071 Prometheus418

I can't shake this nagging feeling that it's a hell of a good contrarian trade to go long BAC these days- not all-in, of course, but it might be worth risking a little in a side pocket.

Time will tell. I'm not acting on it, just got that little whisper in the back of my mind. Sometimes that little whisper is right.

Thu, 10/06/2011 - 00:32 | 1744261 RockyRacoon

What took you so goddam long? I left Regions and went to my local S&L (top rated) 2 years ago! I see Regions has just imposed a truckload of new account and card fees. They can burn in hell with all the rest of 'em for all I care.

Wed, 10/05/2011 - 20:35 | 1743665 Pegasus Muse

Sacré bleu! Un nouveau noir se pavane tous les jours!

Wed, 10/05/2011 - 20:54 | 1743760 BandGap

C'est vrai! Pensez-vous trop?

Wed, 10/05/2011 - 21:38 | 1743879 papaswamp

Looks like they are also bailing out Belgian ones too...perhaps they will bail out everyone.

Wed, 10/05/2011 - 22:15 | 1743956 Coldfire

Under the 80-20 rule BNP, SocGen and CA practically comprise the entire French banking sector.

Thu, 10/06/2011 - 05:51 | 1744558 Archduke

seulement deux ou trois banques, pourquoi pas toutes ?

Wed, 10/05/2011 - 18:31 | 1743158 Harbourcity

Tyler, was a big fan of Wow back in 2006 - thanks for the timely nod.

Wed, 10/05/2011 - 18:34 | 1743169 centerline

Never played it - but I remember this one circulating the internet back then. Funny then and still funny now.

Wed, 10/05/2011 - 18:38 | 1743191 xtop23

Leroy was funny but type in "Onyxia Wipe WoW"

I played Everquest years ago but gave up online gaming when I decided Id rather get laid than eat Cheetos and yell at my computer screen.

Wed, 10/05/2011 - 18:44 | 1743216 fuu

More DoTs, more DoTs, c'mon more DoTs. Stop DoTs.

Wed, 10/05/2011 - 19:26 | 1743347 Bad Asset

For the Horde ... bitchez.

Wed, 10/05/2011 - 20:26 | 1743637 A Nanny Moose

Watch the fucking tail!!!

All I can say is ROFLMAO

http://www.youtube.com/watch?v=iEWgs6YQR9A

Wed, 10/05/2011 - 23:27 | 1744110 MayIMommaDogFac...

Bip Bippadotta says +10

Wed, 10/05/2011 - 19:05 | 1743293 dracos_ghost

Man, Tyler is on a roll today. First the Spock post which was infinitely funny and now LEEEROY JENKINS.

Thanks for the comic relief.

Wed, 10/05/2011 - 18:32 | 1743159 xtop23

lol hilarious

cue deer ........ Annnnnndddddd,,,,,,, SCENE.

Wed, 10/05/2011 - 18:33 | 1743162 centerline

Leeeerrrrrooooyyyy Jenkins. LOL. Classic. Made me laugh after a really long day, followed by a really long week, month, year... you get the picture.

Wed, 10/05/2011 - 18:36 | 1743181 cnsteph

AHHAHA I laughed even before I saw he posted the video. Non-gamers won't fully understand the refference.

Wed, 10/05/2011 - 23:12 | 1744079 Prometheus418

Forget "fully-" I couldn't make heads or tails of any part of it. But, I am glad some of you got a chuckle out of it- any little light right now is worthwhile.

Thu, 10/06/2011 - 00:35 | 1744270 RockyRacoon

I wasted half my life and a ton of quarters in the 1980s on video games -- I'm cured. If ya wanna fight, take it to the streets for real. Real blood is a lot different, and let's not even talk about actual pain....

Wed, 10/05/2011 - 18:36 | 1743178 doomandbloom

Remain fucking calm!

Wed, 10/05/2011 - 18:50 | 1743235 X.inf.capt

and keep your bug out bag....close!

Wed, 10/05/2011 - 23:35 | 1744124 DoChenRollingBearing

Green, I agree, but condo dwelling Mr. and Mrs. Bearing are not in a position to become farmers. We will have to Bug In.

Thu, 10/06/2011 - 00:36 | 1744275 RockyRacoon

Can I crash on the sofa? Promise I won't rummage the trash.

Thu, 10/06/2011 - 04:09 | 1744490 bigkahuna

Must install hydraulic turret for bug in. Then crash and take rotation on the turret.

Thu, 10/06/2011 - 12:20 | 1746112 RockyRacoon

My itchy trigger-finger is ready!

Wed, 10/05/2011 - 18:36 | 1743180 Harbourcity

In the Wow vein, to borrow a Chuck Norris fact from days in the Barrens of Wow...

"The Fed counted to infinity - twice."

Wed, 10/05/2011 - 18:36 | 1743182 Fanakapan

The Irony is Delicious, the Frogs elect a Thatcherite Midget, and arrive at that creeds final destination within 5 Years.

We Limeys at least streched it out for 30 :)

Wed, 10/05/2011 - 18:48 | 1743232 chump666

"Thatcherite Midget" hahahahahaah....

Wed, 10/05/2011 - 18:37 | 1743183 fuu

I farking love you Tyler.

Wed, 10/05/2011 - 18:37 | 1743184 SheepDog-One

Well nationalizing the banks was the plan all along anyway. Enjoy, serfs.

Wed, 10/05/2011 - 18:39 | 1743193 Derpin USA

Did you mean bankinization of the nationals was the plan all along?

Wed, 10/05/2011 - 21:20 | 1743830 Quentin Daniels

Once the banks and the governments have completed their mergers, the resulting entities sure won't be republics, or democracies.

Wed, 10/05/2011 - 18:37 | 1743186 ItsEvolutionBaby

at least i got chicken

Wed, 10/05/2011 - 18:38 | 1743188 LookingWithAmazement

French banks saved, no crisis, no end of euro, no Armageddon. Boring world we live in.

Wed, 10/05/2011 - 21:14 | 1743812 The Big Ching-aso

Wait until French Revolution II hits and you're really gonna be looking with fucking amazement.

Wed, 10/05/2011 - 18:41 | 1743203 nyse

This shit is funny as hell.

Wed, 10/05/2011 - 18:43 | 1743212 Cassandra Syndrome

How can France cover this all without ECB support who in turn need printed up funds from thin air?

Wed, 10/05/2011 - 18:47 | 1743214 sitenine

France and Dexia are both still AAA? Morons.

Wed, 10/05/2011 - 20:20 | 1743610 knukles

But Redemption, Salvation and Atonement of Sins,
Goldilocks fucking downgraded Dexia to sale from hold this very morning!

Wed, 10/05/2011 - 18:44 | 1743218 chump666

France you deserve to get your credit rating stripped. F*cking con artists

Wed, 10/05/2011 - 18:44 | 1743219 Shell Game

At least I have chicken -Leroy Jenkins

LMAO!

Wed, 10/05/2011 - 18:45 | 1743222 paul_Liu

This is great.

Looking for ZH vs MS part3?

Wed, 10/05/2011 - 18:45 | 1743223 Fips_OnTheSpot

Nothing to see here. Move along, IF NEEDED.

Wed, 10/05/2011 - 18:46 | 1743227 RobotTrader

Proof that TPTB was "At the Ready" to roll out whatever was necessary to stave off an implosion.

You don't think these guys are dumb enough to allow the whole system to crash, do you???

With the 30-yr. yield at record lows while running a $15 trillion deficit, that is proof enough that the impossible can be achieved.

Wed, 10/05/2011 - 18:51 | 1743241 xtop23

I think you overestimate them. They are scrambling to get things buttoned down before we engage ludicrous speed.

Wed, 10/05/2011 - 19:01 | 1743279 topcallingtroll

Captain! The printer! She canna take much more!

Wed, 10/05/2011 - 19:26 | 1743351 juangrande

Damnit Jim! I'm a doctor not a SPERM WHALE!

Wed, 10/05/2011 - 20:23 | 1743623 knukles

OK, Milton! Your're on the next landing par-teee. Make sure you wear your nice clean new Red Jersey. We don't wanna make a bad impression with those nasty Klingons.

Wed, 10/05/2011 - 19:31 | 1743365 buzzsaw99

what's the matter colonel sanders, chicken?

Wed, 10/05/2011 - 23:48 | 1744148 CrazyCooter

I hate to have to one-up ya buzz, but ...

http://www.mediaite.com/tv/this-exists-obama-fried-chicken-is-chinas-new...

Regards,

Cooter

Wed, 10/05/2011 - 18:52 | 1743243 chump666

They are totally dumb. Any debitor nation relying on a creditor fix will be soley and f*cking disspointed when that 'creditor' "implodes". I would start to lock that in, Europe/US will both go into an ecomomic iceage, timed for winter...how ironic. But lasting for a lot longer.

Wed, 10/05/2011 - 18:53 | 1743246 tmosley

ROOOOOOOOOOBOOOOOOOOOOO TRADER!

Wed, 10/05/2011 - 18:54 | 1743253 PY-129-20

Yeah, it was a Shining-moment.

http://www.youtube.com/watch?v=MPpMHCodzzw&feature=player_detailpage#t=476s

Wed, 10/05/2011 - 18:59 | 1743262 bob_dabolina

The US federal budget deficit is 1.3T not 15T

Wed, 10/05/2011 - 19:03 | 1743286 hambone

Bob,

jealous much...now jealous that Robo can make up his own new, unique definitions and you are stuck w/ same old, same old!

Wed, 10/05/2011 - 19:40 | 1743382 bob_dabolina

Bleeding crimson with jealousy

So jealous of Robo that it stings the fabric of my existance. I only wish it wasn't so transparent.

Wed, 10/05/2011 - 20:25 | 1743636 hambone

Yeah, there's a lot to love w/ Robo...if only we could all be so...Robo-like. What a world that would be?!?!

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Le Figaro Discloses France Has Prepared An Emergency "Just In Case" Nationalization Plan For "2 Or 3" Banks

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