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EU: France Begins Bail Outs
Live Trading News ^ | 9/2/2012

Posted on 09/02/2012 8:40:40 PM PDT by bruinbirdman

French government to rescue mortgage lender CIF

France’s government plans to intervene to rescue Credit Immobilier de France after the struggling mortgage lender was hit by a liquidity crisis following a recent downgrade by credit rating agency Moody’s, Le Figaro newspaper reported Saturday.

CIF’s board met Friday night and formally demanded government help, the newspaper said, without naming its sources.

The lender, which has about 300 branches throughout France, did not return a phone call seeking comment. The government was not available for comment.

As a condition of a state guarantee backing the group, the government demanded the resignation of Claude Sadoun, the group’s CEO, the newspaper said.

CIF has been looking for a buyer since at least May after its future was thrown into doubt by the evaporation of once-cheap funding from credit markets, on which it depends to finance its operations.

Earlier this week business daily Les Echos reported that another government-owned bank, Banque Postale, was opposed to rescuing CIF itself.

The mortgage lender at this point is most likely to be wound down with government backing rather than being sold or revived, the paper said.


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: eucrisis; francecrisis

1 posted on 09/02/2012 8:40:44 PM PDT by bruinbirdman
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To: bruinbirdman

Maybe Corzine can find work in France.


2 posted on 09/02/2012 8:41:54 PM PDT by Paladin2
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To: bruinbirdman
Well, that certainly explains why France is doing this.
3 posted on 09/02/2012 8:43:09 PM PDT by Olog-hai
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To: Cincinna

Gallic Ping.


4 posted on 09/02/2012 8:44:26 PM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: bruinbirdman

Government propping up failing business with the money taken from the peasants by force/fiat doesn’t sound very egalitarian to me.


5 posted on 09/02/2012 8:56:42 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: bruinbirdman

“...the struggling mortgage lender was hit by a liquidity crisis following a recent downgrade by credit rating agency Moody’s...”

Should read: “Credit rating agency Moody’s downgraded the struggling mortgage lender after it was hit by a liquidity crisis...”


6 posted on 09/02/2012 10:21:43 PM PDT by torchthemummy (Calvin Coolidge - "Patriotism is looking out for yourself by looking out for your Country.")
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