French minister insists banks are solid

AP News
Posted: Sep 15, 2011 3:48 AM
French minister insists banks are solid

France's finance minister says that French banks are solid and do not need to be recapitalized despite being heavily exposed to Greece's debts.

Francois Baroin said on France-Info radio Thursday that leading French banks brought in billions in profits this year and "are companies that do no need recapitalization."

He says the banks aren't having difficulty with access to liquidity and said markets should have confidence in the their "reinforcement strategies."

Moody's downgraded the credit ratings of French banks Societe Generale and Credit Agricole on Wednesday amid huge volatility in the markets as investors worry about their exposure to Greece's debts.

Baroin also stresses Franco-German support for Greece as it tries to contain its debt crisis and stay in the eurozone.