Christine Lagarde Will Become Unwanted in Europe

Christine Lagarde will soon become unwanted in Europe. The losses of European banking shares accelerated after the speech of IMF president, Christine Lagarde, saying that a liquidity crisis could not be ruled out and some banks needed additional capital. Christine Lagarde also called the advanced economies to stimulate the growth by all means. Is the speech of Christine Lagarde to blame for the drop of banking shares?

Six Months Later: USMI, SNDS, BNPC

Previous.Close    Last    Change     Loss

BNP.PA    32.230             29.800   -2.430       7.5%

ACA.PA     5.858               5.403     -0.455     7.776%

GLE.PA    19.510             17.445   -2.065     10.58%

KN.PA       2.604                 2.406     -0.198     7.6%

BNP.PA: BNP Paribas, ACA.PA:Credit Agricole, GLE.PA :Societe Generale, KN.PA=Natixis

French banks again led the fall in French Stock Exchange, with a 10.58% drop for Societé Generale, The CAC40 fell by 3.6% to 2974.59. The worst performer was Societe General in French stock exchange market.

London FTSE 100 dropped 2.35% and closed at 5214.65.Top loser was Barclays, with a 9.43% loss. Top winner was Tullow Oil with a 15.15% gain. Frankfurt, the DAX, fell by 4.04 % and closed at 5189.93.

Previously, Christine Lagarde had urged European states to recapitalize the banks in a speech at the Jackson Hole conference. She was criticized harshly by many French politicians and business people (read Laurence Parisot’s outrageous statements) after her speech. It seems that Christine Lagarde, who was once the golden girl of France, will soon become an unwanted person in France.