afp's memorial 9/11 monday, page-58

Disco - IMO there's a targeted attempt to trash French banks. Starting early August when rumors were circling that they would be downgraded, and that France itself was facing a banking and economic crisis similar to Greece. I don't know why there is an obsession with the French banks, but it reminds me a lot of how relatively healthy US firms were smashed around the peak of the GFC, only to recover when people realised that there were no truths in the rumors. Sell them all while you were busy working out who held the most CDOs. Firms were being hit by over 20% on rumor alone. In a climate of debt freeze, the rumors can threaten a bank's existence as in the case of the GFC, but our current interbank lending environment is nothing like the GFC. People are now selling everything while they establish how much toxic government debt is being held, and how far it's spread.

BNP Paribas' pre-tax profit for the first half was EUR 7.4 billion, as published on 2nd of August, and its aftertax profit was EUR 4.7 billion, and this includes Greek debt provisions following the 21 July agreement. The bank's post-tax ROE for the first half was 13.8%, one of the highest among banks in the western world.