French Finance Minister Bruno Le Maire plans to speak with his Swiss counterpart in the coming hours to discuss the situation around troubled lender Credit Suisse Group AG, according to Prime Minister Elisabeth Borne.
(Bloomberg) — French Finance Minister Bruno Le Maire plans to speak with his Swiss counterpart in the coming hours to discuss the situation around troubled lender Credit Suisse Group AG, according to Prime Minister Elisabeth Borne.
She told the Senate during government questions on Wednesday in Paris that the matter was the responsibility of the Swiss authorities and should be dealt with by them.
“Concerning Credit Suisse, whose difficulties have been known for a long time, I note this bank does not belong to the euro zone and is therefore not subject to European banking supervision,” Borne said. “We are very vigilant, but the situation is very different from what we saw in 2008.”
She said numerous prudential rules have been put in place for all euro-area banks since the financial crisis.
As for French banks, the prime minister said they have diversified their activities, have among the highest capital and liquidity demands in the world, and are subject to European supervision. They aren’t at risk following the collapse of California-based Silicon Valley Bank, she said.
French banking stocks, which have sunk in recent days, fell further on concerns around Credit Suisse after its biggest shareholder said it was absolutely not open to further cash injections in the Swiss lender.
Credit Suisse shares, which tumbled more than 30%, dragged BNP Paribas SA and Societe Generale SA down as much as 12.3% and 13.6% respectively on Wednesday.
(Updates with comments from French prime minister starting in second paragraph.)
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