International financial crisis – Communiqué issued by the Ministry for the Economy, Industry and Employment
Paris, 15 September 2008
Christine Lagarde, Minister for the Economy, Industry and Employment, liaising with Christian Noyer, Governor of the Banque de France, and Michel Prada, Chairman of the Autorité des marchés financiers [French financial markets regulator], has made sure that all the requisite measures have been taken to minimize the repercussions in France of the announcement by Lehman Holding Inc., parent company of Lehman Brothers Group, of its intention today to file a petition in the United States [for bankruptcy protection].
The Banking Commission had a meeting today, Monday, 15 September, and appointed a temporary administrator for Lehman Brothers Bank, French subsidiary of Lehman Brothers International and the investment subsidiary in France of Lehman Brothers International (Europe). The Lehman Brothers French subsidiaries have no significant deposit-taking business.
On its side, the Autorité des marchés financiers is assessing, in collaboration with Lehman Brothers Asset Management France, the possible impact of the parent company’s situation on the management company’s activity. Similarly, the consequences of the Lehman Brothers’ situation for the assets managed by the other management companies on the Paris market are being analysed. Given the rules on the division of risks and the holding of assets by a separate business, the impact, currently being assessed, should be limited.
The French authorities are monitoring the Lehman Brothers Group’s situation in close consultation with the other authorities involved, at both international and European level, who are acting to keep the markets and financial systems operating smoothly. They are maintaining close contact with all market participants with business links with the Lehman Brothers Group.
French credit institutions have limited exposure to the Lehman Brothers Group. The French authorities remain very vigilant regarding the consequences for all the financial institutions of the Lehman Brothers’ situation and changes in the overall state of the financial markets./.