France\’s government has stepped in to rescue the floundering banking group Crédit Immobilier de France after the search for a buyer failed.
The move came after the credit-rating agency Moody\’s downgraded CIF, which has been up for sale since May after what it described as a \”liquidity crisis\”.
Another bank bust eh? All that high speed trading, that socially useless part of investment banking no doubt.
CIF, which specialised in mortgage lending to less privileged families, encountered problems when previously cheap funding from credit markets, on which it depends to finance its operations, dried up. A €1.7bn (£1.34bn) covered bond is due to expire in October.
Oh. So it\’s Northern Rock instead. Plain old mortgage banking killed by a funding mismatch. Well, obviously, we\’ve got to tax the high speed trading, bring the investment banks to heel, just to show that they had nothing at all to do with this.