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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love's picture

fucking brilliant, this is exactly the way i picture this playing out

walküre's picture

Rien ne va plus!


walküre's picture

les meilleures papiers de popo pour les plus grande kaka!


PulauHantu29's picture

Sarkozy's séance may be needed to raise Napoleon from the Crypt for help:


falak pema's picture

the only thing that seance will raise is a desire for her jewels, both on her forehead as below in her nether regions. Go long bull's horns! Before they get nationalized.

dropdeadfed's picture

We can offset our GDP woes if we all purchase WoW and sell in-game gold to teh Chinas?


SheepDog-One's picture

Its the end of the World.....of Warcraft.

monkeyshine's picture

There is an old saying that it is better to cut off your whole hand in one fell swoop than to do it one finger at a time. So France puts all three phrases in one press release gets it all done and over with.

M.B. Drapier's picture

Aaah, bank guarantees that might not cost anything. This brings me right back.

chump666's picture

hahahaha " Leroy you are stupid as hell..."



Messianic's picture

hahahaha "Brian Moynihan, you are stupid as hell..."


azzhatter's picture

but....but.....the stress test results were good

Mentaliusanything's picture

Stress tests all Clear but the prostate exam was Bummer 

SheepDog-One's picture

LEEEEEROOOOOYYYY JENKINNNNSSSS!! Hey at least I got chicken motherfukas!

Seasmoke's picture

32.32% rate of survival.....think they were a bit optimistic.....LOL

SheepDog-One's picture

Thats a 32.33% (repeating, of course) survival rate. Should be able to take that .33 and default swap derivatize the SHIT out of it! 

Obaminator's picture

Stick a fork in it.

lizzy36's picture

Quelle Suprize....AN anaylst at a French rating agency in France, saying the bailing the bank at the expense of the country is a good thing. Probably the same one wha rated Ireland, when it bailed its banks BUT just before it then required a bailout.


M.B. Drapier's picture

Yes, we've seen this movie before in Ireland. It's all so very familiar ... ah, there are the promises that the guarantee probably won't cost anything! Of course the ending may be quite different this time, for various reasons.

hambone's picture

Day by day, bit by bit, the contagion has worked it's way from the tiny islands, to the EU underbelly, now deep into to the near CORE, and soon the virus will infect the heart of the CORE...


nmewn's picture

Its an amazing thing to watch really. The thing they love & desire so much (debt) is whats killing them.

Ah well, throw another stack of Franc/euro's on the fire monsieur, its getting cold ;-)

vote_libertarian_party's picture

ummmmm...so would THIS be a credit default triggering event?


Or does TPTB say 'All contracts are voided'


No insurance for YOU.

SheepDog-One's picture

We'll see what rumors they come up with to 'fix' this black swan.

jmcadg's picture

I'm gonna use my 'intimidating shout', we're gonna need divine intervention, we've got 32.333 repeating of course chance of survival.

Leeeeeerrrooooyyyyy Jenkins.

Godammit Leeroy you dumbass.

That was hilarious. Thanks TD

jmcadg's picture

Is tomorrow gonig to be an Epic day:

French nationalisation talk,


SNB data dump

ECB rate announcement

Jobless Claims


Wow, have I missed anything, Greek default!

nah's picture

it is now fashionable to bail out banks

darteaus's picture

This sound bite is simply released to give a "heads up" to the public for the nationalization.

jmcadg's picture

RIP Steve, Decent legacy dude.

Threeggg's picture

You mean to tell me the french have more foresight than the webmaster of BAC.


RobotTrader's picture



OK you guys, our deficit is $1.3 trillion and the national debt is $13 trillion and off-balance sheet crap probably totals $133 trillion.

In the end, it doesn't matter if its a trillion or quadrillion.

These "investors" who were running pell mell into our Treasuries for safety are not going anywhere.

At the first whiff of trouble or a crisis, those same clowns will be fleeing like a herd of Wildebeests right back into Treasuries, and they will be dumping gold, oil, copper, platinum, and everything else.

Same thing happened in 2008.

It just happened again in 2011.

Why would it be any different later?

malek's picture

Best of luck for your 100% treasuries position!

MrSteve's picture

I will be different later because later, the fiat US Treasuries and FRB notes wil be adversely impacted by hyperinflationary "printing" pressures.

That's one. What ever China does to save its bacon is #2 and whatever the "Saudi kingdom" does to save its oil-based currency-wealth parked in City and NYC reserves is #3.

Pick a number!

tmosley's picture


nmewn's picture

"In the end, it doesn't matter if its a trillion or quadrillion."

In the end, to a paper pusher, correct.


And the point of seeing it all beforehand and avoid living a lie would be?........

electronpaul's picture

They'll be runing to Chinese treasuries...

electronpaul's picture

They'll be running to Chinese treasuries...

RockyRacoon's picture

Ok, RobotTrader, how come you can call a gold bubble, but not a Treasury bubble?   Biased much?

knukles's picture

I'm not sure that there's not anything that's not a fucking bubble anymore at this point. 
I mean the whole world has gone to hell in a laundry bag of dirty jockstraps and all anybody does is pretend that things are gonna be A-fucking-OK. (The jocks will magically come home cleaned and starched for free.)  Nobody wants to hear (well, except ZH'ers ex-ZHer's Trolls) anything about reality. 
A view of the world to which I can testify firsthand.  When most people ask about what they should be invested in they want answers within the paradigm of the old traditional asset allocation models.  Even hint at what one expects (TSHTF, all hell breaking loose, bundles of Joyless Unintended Consequences Surfacing Like Boils) and one gets looked at like they're Nut-Fucking-Crazy.  So now the best advice I can give people is that I am hoping for the best and paliing for the worst; they should get their affairs in a shape whcih allows them to sleep well at night. 

RockyRacoon's picture

I rest really well!  The gold and silver lumps under the mattress lend only solace and peace to my sleep.

Oh, and one of these for my Moss 500:


The Fonz...before shark jump's picture

Don't worry the French know what they are doing, this will protect them in the long run..........just like the Maginot line did

THE DORK OF CORK's picture

"Nationalise money and not the Banks" - Irving Fisher.

If France takes this bank debt on its books its only option is to buy Gold on a massive scale.

It could easily just turn customer credit deposits into Goverment money and let the bond holders with the private debt contracts - but the bankers run France - like everywhere else in Europe.

They will destroy the currency.

 We have seen this soap opera already in Ireland - its shocking really.


WizDumb's picture

Remember this comes a week or so after the french announcement that you cant buy more than 600$US in Gold w/o a bank transfer...


Fiat death 

buzzsaw99's picture

Buzz n'est pas content

itstippy's picture

This is just a clear warning to the jackals not to mess with French banks:  Paris now has a bazooka in their pants.  If all they had was a squirtgun they might be forced to use it, and it might have proven inadequate.  But since they have a bazooka in their pants, and the jackals know they have a bazooka in their pants, they won't have to use it.

It's a strategy that works every time.  French taxpayers need not worry. 

wisefool's picture

Hank Paulson is teaching the next generation of UChicago econ PhD graduates as we speak. No Sarc. He is on the facualty.

doomz78's picture

The answer is 50 trillion.  That is the world answer.