Credit Mutuel appear to be an a poor investment….moody’s rating agency has just warned over their exposure to Greek debt and they may soon be downgraded something which moodys appears to be discussing according to the article below.
While microfinance is extremely benificial to the bank in establishing brand in emerginging markets one can only be amazed that at a time when 3500 famine refuges as day are exiting Somalia, Credit Mutuel lists along side their exposure to Greece debt (which is Moodys main concern) exposure to….Somalia. Credit mutuel is known to send correpondance abroad citing numbers which may only be dialed from within France and not internationally. Clearly given their international activities there is a somewhat darkly comical good reason for this idiotic level of customer service!
http://www.bfcm.creditmutuel.fr/en/bfcm/pdf/BFCM_AN_12_2007.pdf
Page 46 Soverign risk Somalia – from Credit Mutuel finacials.
http://www.bfcm.creditmutuel.fr/en/bfcm/pdf/BFCM_AN_12_2007.pdf
Some observers may be inclined to believe that such ineptitude is typical of a bank floating on such work place practices as taking solid hour long lunchbreaks and a lack of linguistic capacity beyond French in their front line staff. A fine example of a crumbling edifice of European banking that should have been properly shelved in 1950, as the remarkable preponderance of paper cheque banking in the French market is a tribute to in the age of chip and pin and online transfers.
One example of this is for example P. L’Homme an employee who is known to send correspondance to international destinations with telephone contact details that may only be dialed from within France, takes solid 1 hour lunchbreaks and makes no reply to correspondace unless addressed in French, dispite writing to international destinations. Acceptable perhaps in the 19th century when viewed by someone external to French banking practices, he may perhaps eventually obtain a position advising on which famine struck country Credit Mutuel should grow it’s brand and throw it’s capital in next.
Zorba the Greek would be spinning in his grave.
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Tags: Credit Mutuel, French Bank, French Banking, Greece, Greece Debt, Greek, Greek Debt, Moodys, Rating, Somalia, Soverign Debt
September 13, 2011 at 4:23 am |
Hi,
Interesting post, but Credit Mutuel stock could not fall, because Credit Mutuel is not listed on the French stock market…
September 13, 2011 at 7:28 pm |
Completely true – rushed to finish the post and sited CAC 40 fall on the day as stock price. -have removed the % reference.
CM has as you state has no no listing because of it’s structure best measure of it’s confidence is the response to it’s bond sales.
Now let’s see what happens with BNP and Société Générale! Looks like they will be extremely volatile over the coming months.
It would take a brave man to invest in French bank stock right now and since the date of the posting the banks have got hammered on the CAC 40.
On the US side Bank of America is once again down 36% over the last three months. Soc Gen has Greece BOA has countrywide and ML.
QE3 and the ECB to reinflate the punctured tire again?
Thanks for your comment/correction !