In France, the authorities are racing to avoid having to rescue Caisse Centrale du Credit Immobilier (3CIF) after Moody’s downgraded the mortgage lender last week, warning it could become totally reliant on taxpayer support within months.
The lender is one of France’s largest mortgage providers and is owned by a collection of local authorities and mutuals, giving it implicit government support.
We\’ve all sorts telling us that we shouldn\’t have shareholder banks, that it should be mutuals and local politicals running the banking system.
In Spain it\’s the cajas, which are exactly that, which are falling over. In France it\’s the bit which is mutuals and politicals which is falling over…..
Even at the very best this isn\’ty really an advertisement for running the British banking system through mutuals and politicals, is it?
Do recall what the free market argument actually is. Not that markets are perfect, just that other organisational systems can be even worse.