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

Tyler Durden's picture

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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slewie the pi-rat's picture

remember the maginot, BiCheZ!

redpill's picture

Seulement deux ou trois banques, pourquoi pas tous?

Manthong's picture

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.


Ahmeexnal's picture

Sacre bleu, Deux-Deux!!

akak's picture

Apres les banques, le deluge.

doomz78's picture

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. 

nmewn's picture

Chérie, j'ai rétréci les banques!

SheepDog-One's picture

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

nmewn's picture

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

The Big Ching-aso's picture

This is fucking with my serenity.

I did it by Occident's picture

une nouvelle bataille de Verdun? 

MayIMommaDogFace2theBananaPatch's picture

quick number crunch -- 32.333% chance of survival.

+1000 LMAO


Hulk's picture

Voulez-vous coucher avec moi ce soir?

floydian slip's picture


itchy itchy ya ya heya

moca chocolat-te ya ya



akak's picture

Voulez-vous coucher avec moi ce soir?

Merci, mais non.

strannick's picture

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

zorba THE GREEK's picture

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

Prometheus418's picture

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...

knukles's picture

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

Ahmeexnal's picture

Chinese is now more popular amongst language students.

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

Two Towers AU AG's picture

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..

upWising's picture

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.


papaswamp's picture

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

wisefool's picture

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.

Oh regional Indian's picture

The IMF had you long before BillyBob!


StychoKiller's picture

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


Prometheus418's picture

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.

RockyRacoon's picture

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.

Pegasus Muse's picture

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

BandGap's picture

C'est vrai! Pensez-vous trop?

papaswamp's picture

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

Coldfire's picture

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

Archduke's picture

seulement deux ou trois banques, pourquoi pas toutes ?

Harbourcity's picture

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

centerline's picture

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

xtop23's picture

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.

fuu's picture

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

dracos_ghost's picture

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

Thanks for the comic relief.

xtop23's picture

 lol hilarious

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

centerline's picture

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

cnsteph's picture

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