Denis Kessler sees in the rescue of AIG's distortion of competitionFor several reasons that it lists as wellAs the tone used by the marks it evolvesOf Nathalie Benezet will no doubt less needDARRELL ISSArepresentative from California It is totally abnormal rail the authors of the studyWhile the deficit of the State is established at 67This is an ethic of aesthetics in gestationBank balance sheets have changed in natureBut the truth of a day is not that of the next dayHow is it that market activities will still represent two thirds of the income in Calyon
The brokerage is not a market as such activity. Its results are recurrent and its activity adapts quickly to economic cycles. Remember that brokers pay varies with the treated volumes. These activities are thus not risky. Calyon will profile balanced financing activities, market activities themselves (debt, rate derivatives, cash, etc.) and brokering activities. A non-market activities financing bank, this has no meaning. But it is clear that we stop the activities that are the cause of impairment losses that we have spent the last few months, namely the structured credit and products in effect of accumulation. This represents approximately EUR 700 million of revenue that will be partly offset by the progression of revenues on our traditional crafts and the decline of our expenses.
With a goal of 1 billion of net income from 1.8 billion in 2007 out of losses related to the crisis, Calyon significantly reduces its ambitions. Will you become a simple Bank Group
First of all, I want to clarify that 1 billion of net income is not our objective but a basement: this is the minimum for our recurrent result. More broadly, Calyon is at the heart of the strategy of Credit Agricole. Moreover, the Group provides 20 of revenues from Calyon in France, which is certainly not negligible, but that also means that the substance is conducted outside. The Credit Agricole needs a bank financing and investment full but in the service of its ambitions. This implies regular and satisfactory results, and a risk profile consistent with the wishes of shareholders, which focuses on a reduction of volatility and the basis of cost. So, we need to have prospects of development. And we are satisfied to generate a revenue growth on our strengths (structured finance, trade and flows including but also brokerage Bank), with respect, of course, the couple risk-profitability.
Have what lessons you learned from the crisis
Launched development plan in 2005 led to the difficulties that are known, but has also allowed us to double our customer base more than 4,000 today and strengthen our historic strengths (debt, foreign exchange, cash...). Therefore, it must not throw out the baby with the bath water! But of course the lessons were drawn. First of all, it must abandon the race size all over the place, which does not mean not to continue to build on our strengths. Then, we must stop model "originate to distribute", that grows in the sale of products not always adapted to the needs of the clients in favor of an approach much more oriented towards the service and the satisfaction of the customers. It is a real cultural change in a BFI! Third lesson, Calyon must not forget that development builds first Credit Agricole and the large corporate. Finally, the crisis has highlighted the perverse effects of unreasonable bonus policy.
What are you going to change on bonuses
We want bonus policies take more account of the overall performance of the Bank. We will remove the guaranteed bonus and those with automatic calculations. And we want to implement retention policies.
Don't you be afraid some departures
We do so to retain the skills and key skills.
Suppression of 500 positions by the play of natural in the second quarter departures will suffice to reduce your expenses by 300 million euros here in 2009
Course not. Deletions of posts, which focus on activities in extinction, are part of a set of measures to adjust the basis of cost as a result of the case of the activities and the streamlining of the organization. To add the decrease in overhead costs and the revision of the policy of the bonus.
Has the crisis made you lose customers
Not at all! Some have expressed concerns, of course, but we were reassured on the fact that it was well and that it intended to remain there. And, paradoxically, we have never registered a flow of mandates as high as currently.
The worst is over for what concerns the crisis
About us, Yes, of course. More generally, if the context continues to evolve rapidly, the contours of the crisis, themselves, are now better controlled. For Calyon, after diagnosis and measurement of the impact of this crisis, the time is now to redeployment, the objective which assigned us is clear; the Calyon new resolutely turned to the service of all its clients, either those of the Credit Agricole or others.
