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| Version 1 | Version 2 |
|---|---|
| Write-down woes for French banks | Write-down woes for French banks |
| (about 4 hours later) | |
| France's biggest retail bank, Credit Agricole, is contemplating asking shareholders for 5.9bn euros (£4.7bn; $9.1bn) to help its financial position. | France's biggest retail bank, Credit Agricole, is contemplating asking shareholders for 5.9bn euros (£4.7bn; $9.1bn) to help its financial position. |
| The move comes after more write-downs at its Calyon investment banking unit as a result of the credit squeeze. | The move comes after more write-downs at its Calyon investment banking unit as a result of the credit squeeze. |
| Meanwhile, the country's second-largest bank, Societe Generale, said its own write-downs had led to a 23% fall in profits in the first quarter of 2008. | Meanwhile, the country's second-largest bank, Societe Generale, said its own write-downs had led to a 23% fall in profits in the first quarter of 2008. |
| Net profit fell to 1.1bn euros in the period from 1.43bn euros a year ago. | Net profit fell to 1.1bn euros in the period from 1.43bn euros a year ago. |
| Losses at SocGen's global investment management arm were blamed for the dip. | Losses at SocGen's global investment management arm were blamed for the dip. |
| In January this year, SocGen announced 4.9bn euros of losses which it blamed on rogue deals carried out by Jerome Kerviel - a junior trader at the bank. | In January this year, SocGen announced 4.9bn euros of losses which it blamed on rogue deals carried out by Jerome Kerviel - a junior trader at the bank. |
| However, the bank said that it was managing the fall-out of those losses. | However, the bank said that it was managing the fall-out of those losses. |
| Credit Agricole expects to make a net profit of 892m euros in the quarter - down 66% from last year and much worse than many analysts had predicted. | |
| The struggling Calyon unit is set to write off 1.2bn euros during the first three months of the year as a result of the credit crunch. | The struggling Calyon unit is set to write off 1.2bn euros during the first three months of the year as a result of the credit crunch. |
| Credit Agricole's shares fell sharply on news of the rights issue - down by more than 6% by midday trading. | Credit Agricole's shares fell sharply on news of the rights issue - down by more than 6% by midday trading. |
| "The fact that they need another six billion euros of capital is worrying and I'm staying cautious (on the stock)," one Paris dealer said. | "The fact that they need another six billion euros of capital is worrying and I'm staying cautious (on the stock)," one Paris dealer said. |