French Banks Rip Higher On Talk Of Weaker Capital Rules


French banks are soaring this morning, with Societe Generale up 7.36%, Credit Agricole up 4.98% and Axa up 3.06%.

The reason appears to be an FT report that France and Germany will seek weaker capital rules (via @fabricepelosi):

A joint paper by Wolfgang Schäuble, German finance minister, and his French counterpart, François Baroin, will on Monday call for important elements of the Basel III rules to be watered down to mitigate any “negative effect” on growth.

A draft of the paper seen by the Financial Times calls for special treatment for banks that own insurance companies and for a three-year delay to the mandatory deadline to disclose leverage ratios, a measure of bank borrowing and risk.

Banks are leading what is turning out to be a rally in European markets, despite to resolution out of Greece.

SocGen is now up around 30% year to date.

See also: A huge sign that the european financial crisis is over >