French Socialist Party Talks Tough On The Banks !

http://www.telegraph.co.uk/finance/financialcrisis/9092004/French-get-tough-on-bank-bail-outs.html

Any French bank that is bailed-out by taxpayers will be part-nationalised and forced to lend to businesses and households, the Socialist party has promised if it wins the forthcoming election as expected.

Segolene Royal said any French bank that is bailed-out by taxpayers will be part-nationalised and forced to lend to businesses and households. Photo: AFP/GETTY

Unlike Britain, which took an 83pc stake in Royal Bank of Scotland and 41pc of Lloyds Banking Group in return for £65bn of taxpayer support in the 2008 crisis, President Nicolas Sarkozy's government provided €360bn (£299bn) of support for French banks without taking any common shares.

Three of France's leading lenders, including BNP Paribas and Societe Generale, have been instructed to raise just over €7bn between them in the coming months.

They are expected to try to tap the markets, but may have to resort to state help.

Segolene Royal, a senior party figure and former wife of the Socialist candidate François Hollande, said today: "Whenever we have to bail out the banks, we will acquire part of their capital and demand the kind of behaviour that should never have been allowed to slide. That means lending to businesses and consumers in the right conditions."

Ms Royal, a former presidential contender, is expected to play a government role if Mr Hollande wins in the April-May presidential election.