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Among other things, Sarkozy promised that all French depositors would be guaranteed not to lose a cent.

Talk about reckless, dangerous words: first, people that did not worry about their bank accounts are now going to worry - that's how you get bank runs startes; and second, how will that work, other than the existing deposit insurance - which is capped?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Sep 26th, 2008 at 04:40:09 AM EST
What's the cap in France, Jerome? And does that cap cover all of one's deposits with one bank?

Hey, Grandma Moses started late!
by LEP (rafifoon@yahoo.com) on Fri Sep 26th, 2008 at 05:12:15 AM EST
[ Parent ]
From the Banque de France:

La garantie des dépôts The deposit guarantee
Les dépôts couverts par le mécanisme de garantie des dépôts sont définis comme tout solde créditeur résultant de fonds laissés en compte ou de situations transitoires provenant d'opérations bancaires normales... Le montant maximum de la garantie offerte est fixé à 70 000 euros par déposant. Il s'applique à l'ensemble des dépôts d'un même déposant auprès du même établissement de crédit, quels que soient le nombre de dépôts ou leur localisation dans l'Espace économique européen dans la limite du plafond précité.Deposits covered by the guarantee mechanism : deposits are defined as any credit balance resulting from funds left in transitional situations or from normal banking operations... The maximum amount of the guarantee shall be 70 000 euros per depositor. It applies to all deposits of one depositor with the same institution, regardless of the number of deposits and their location within the European Economic Area in the ceiling above.

I take that to mean €70K per bank a depositor may use.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Sep 26th, 2008 at 05:26:14 AM EST
[ Parent ]
Thanks. I just borrowed a good amount of money from a U.S. bank and bought euros which are now in my French bank. I pay the U.S. loan back with my income in the U.S. as it arrives. This lest me lock in the exchange rate in the event of a dollar crash and it costs me about 6-7% in interest in the U.S. Happily, or unhappily, as you wish, I have less than 70,000 euros in my French bank.

Hey, Grandma Moses started late!
by LEP (rafifoon@yahoo.com) on Fri Sep 26th, 2008 at 05:40:24 AM EST
[ Parent ]
Right, as I pointed out above: he spoke as if there were no existing guarantee, in other words, he was taking credit for it himself; and he introduced the notion of a threat to ordinary bank deposits. Irresponsible grandstanding.
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Sep 26th, 2008 at 05:12:23 AM EST
[ Parent ]
Having Sarkozy at the commands in these times is rather tragic. This con man sells his snake oil at a grand meeting because he is too afraid to appear at a press conference where he might be asked some proper questions (Palin, anyone ?). He is still clinging to his worn recipes, he transvestites reality, keeps running crazy budget deficits which will weigh inexorably heavier and heavier, to be repaid by decreasing future income, and all the while diverting resources from the public towards the private sector (advertising on TV).

And don't start me about Afghanistan, about religion, justice, etc, etc.

He really is our very own version of Bush.

by balbuz on Fri Sep 26th, 2008 at 06:35:09 AM EST
[ Parent ]

He really is our very own version of Bush.

So who will be our McCain that makes us regret Sarkozy?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Fri Sep 26th, 2008 at 08:47:19 AM EST
[ Parent ]
Havent you got Son of Sarkozy, breaking into politics?

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Fri Sep 26th, 2008 at 08:52:40 AM EST
[ Parent ]

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