Among them BNP Paribas is directly exposed to Lehman Brothers debt

As their European counterparts, the major French banks were not the wedding yesterday. The Credit Agricole action collapsed 9,19 of Société Générale of 9,64. BNP Paribas was unscrewed 7.16, 9.24 Dexia. Natixis, in the process of capital increase, saw its course drag 14,61 and thus wiping the sharp drop in the French market. This relapse on the stock market is all the more bitter that most French banks were beginning to show signs of crisis in recent weeks...

All called however for the quiet, Relativizing their exposure to the collapse of Lehman Brothers. "Everyone is excited and this is understandable, stated in a French Bank, but must be reason keep, counterparty risks are low, they are generally mitigated by hedging mechanisms and appear, in any case, largely manageable for French place.". Authorities were intended also reassuring, the image of the Minister of economy, Christine Lagarde, ensuring yesterday following a meeting of the Banking Commission that the "impact" would be "limited" for French credit institutions.

Among them, BNP Paribas is directly exposed to Lehman Brothers debt. The French Bank had given a line of credit non-guarantee for EUR 170 million, which it may have to draw a line. There are also risks of return secured, with "collateral" (active guarantees) that she is to be of good quality. "Our exhibition is manageable for a Bank of our size," said yesterday a spokesman for BNP Paribas.

Dexia concedes his side exposure to credit risk on Lehman Brothers of approximately EUR 500 million in debentures in the long term. The Franco-Belgian Bank is also a risk of consideration on the US investment bank which is "collatéralisé" and which was primarily the form of agreements of assignment-surrender (trade, for a fixed term of cash against financial securities) for a 1.5 billion notional amount, as well as a loan balance sheet transaction ("negative basis trade") rated AAA for EUR 282 million.

Difficulties in string

To Credit Agricole at Société Générale, it does not wish to specify the size of the exposure to Lehman, while ensuring that they remain "limited". Société Générale indicates that hers is mainly related to market operations governed by "netting agreements (consolidation of flows between two banks) and margin calls. "" On certain regulated markets, as markets for derivatives, the clearing houses are regular margin calls asking stakeholders to cover their potential losses, said an analyst. Until last Friday, Lehman covered its margin calls, but will now follow the evolution of its positions and the related security deposits.

Longer term, the impact of the crisis could be even more important for the French banking industry: rising provisions for risk for worsening economic situation in the United States and around the world, pressure from regulators to toughen the conditions for the exercise of the banking profession, by imposing stricter solvency ratios, restriction and tightening of credit to businesses and households... "These difficulties chain could ultimately accelerate the process of restructuring of the banking sector, including in Europe where development in detail activities should be accelerated," prognostic Pierre Chedeville, CM - CIC analyst.