French Interventions in the Financial Crisis
7 Pages Posted: 24 Oct 2009
Date Written: October 22, 2009
Abstract
The paper first analyzes where France stands in the global picture, and then describes how it is trying to keep the current financial crisis in check. The 2008 French Bank Relief Act created both a financing company and a recapitalization company to help financial institutions via a government guarantee. Other interventions, which were structural, include the reform of securitization, hedge funds, and rules for executive compensation. Finally, the paper proposes a few paths for the future.
Keywords: France, financial crisis, French Bank Relief Act, financing company, recapitalization company, securitization, hedge funds, executive compensation
JEL Classification: K2
Suggested Citation: Suggested Citation