French banks are worst off on fears of an imminent Moody's downgrade. In Europe, SocGen...


French banks are worst off on fears of an imminent Moody's downgrade. In Europe, SocGen (SCGLY.PK) is -9.6%, BNP Paribas (BNPQF.PK) is -11%, and Credit Agricole (CRARF.PK) is -9.7% - leading a 4% drop in Paris's CAC. The pressure on SocGen - which has dropped 50% since Aug. 1 - comes despite today's attempts to calm investor worries.

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  • bbro
    , contributor
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    "BNP Paribas SA, Societe Generale and Credit Agricole SA (ACA), France’s largest banks by market value, are trading at levels that imply a 100 percent loss on Greek, Irish and Portuguese holdings, according to Barclays. In the case of Paris-based Societe Generale, the share price even implies full writedowns on Italian and Spanish debt, according to Barclays.
    “The current discounts to book are driven by much broader macro concerns, and attributing all of the discount to a single risk factor like sovereign is too simplistic,” Sigee wrote, adding that the French banks’ risks remain manageable. “However, it does give a sense of how severely sovereign risks have been priced into equity valuations.”
    12 Sep 2011, 06:25 AM Reply Like
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