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| Troubled French bank boss resigns | Troubled French bank boss resigns |
| (about 8 hours later) | |
| The chairman of French savings bank Caisse d'Epargne has quit over the loss of 600m euros (£466m) in a "trading incident" amid global market chaos. | The chairman of French savings bank Caisse d'Epargne has quit over the loss of 600m euros (£466m) in a "trading incident" amid global market chaos. |
| Charles Milhaud said he accepted full responsibility for the lost cash and is expected to leave without a pay-off. | Charles Milhaud said he accepted full responsibility for the lost cash and is expected to leave without a pay-off. |
| The bank's director general and chief financial officer have resigned from their posts. | |
| The loss was made public soon after the bank had set out plans to merge with another mutual bank, Banque Populaire. | The loss was made public soon after the bank had set out plans to merge with another mutual bank, Banque Populaire. |
| In a statement reported by the AFP news agency, Mr Milhaud said: "This loss is the result of the exceptional volatility of the markets during this period and the breach of instructions that the board and myself gave. | In a statement reported by the AFP news agency, Mr Milhaud said: "This loss is the result of the exceptional volatility of the markets during this period and the breach of instructions that the board and myself gave. |
| "I accept entire responsibility, however. Having devoted my entire life to the Caisse d'Epargne, I have never at any moment considered trying to avoid my responsibilities," he added. | "I accept entire responsibility, however. Having devoted my entire life to the Caisse d'Epargne, I have never at any moment considered trying to avoid my responsibilities," he added. |
| "Those who know me know that I am not a man of money. I am not asking for any indemnity." | "Those who know me know that I am not a man of money. I am not asking for any indemnity." |
| Merger on course | Merger on course |
| French President Nicolas Sarkozy has said Caisse d'Epargne's losses were "unacceptable". | French President Nicolas Sarkozy has said Caisse d'Epargne's losses were "unacceptable". |
| And Finance Minister Christine Lagarde called for a special audit of all French banks. | And Finance Minister Christine Lagarde called for a special audit of all French banks. |
| Ministers hope the resignations will restore confidence in the banking sector and avoid the need for another expensive bailout. | |
| Caisse d'Epargne bet that stock markets would rise, just as the credit crunch sent shares tumbling, says the BBC's Duncan Bartlett. | |
| It said the problems would not derail its planned merger with Banque Populaire, which would make it one of France's largest banks with 480bn euros in deposits. | |
| The two banks together are the majority shareholders in the investment bank Natixis, which has been among the worst-hit in France by the US sub-prime mortgage crisis. | The two banks together are the majority shareholders in the investment bank Natixis, which has been among the worst-hit in France by the US sub-prime mortgage crisis. |
| The latest loss at Caisse d'Epargne comes after France's Societe Generale saw a loss of 4.9bn euros earlier this year, in the wake of a trading incident which it blamed on trader Jerome Kerviel. | The latest loss at Caisse d'Epargne comes after France's Societe Generale saw a loss of 4.9bn euros earlier this year, in the wake of a trading incident which it blamed on trader Jerome Kerviel. |