Societe Generale said it would sell assets to free up 4 billion euros in fresh capital, although the surprise move failed to stem a sell-off in French bank shares, driven by fears of a Greek debt default. Bad time to sell? Another bailout coming?


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Janey answered
It's an attempt by SocGen to fight against the extreme volatility of the Paris Bourse and offset the $13 billion held as Greek sovereign debt.It's in anticipation of the French government having to intervene and re-capitalise the banks, just as Britain had to do in 2008.However SocGen will still have to sell off a projected e25 billion worth of risk-weighted assets to stave off a bailout.The original sell-off is a knee-jerk reaction to a Moody's downgrade and the possibility of Greece exiting the EuroZone.
thanked the writer.
Joseph Michael Wasik
Don't the British still have the same banking problems after their bailouts? The French have a better approach, I think.
Janey commented
The Bank of England have enough gas in the tank yet.They learned their lesson from 2008.

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