PARIS Aug 30 The head of France's business
federation on Tuesday slammed IMF chief Christine Lagarde's call
for a forced recapitalisation of European banks.
Lagarde, who replaced former IMF head Dominique Strauss Kahn
in late June as head of the International Monetary Fund, called
at the weekend for urgent action to counter global economic
"(Her) declaration is completely incomprehensible. European
banks are solid ... and as for French banks, it has to be said
that our banks are among the most solid in the world," Laurence
Parisot, head of France's principal business lobby, MEDEF, told
Europe 1 radio.
Speaking at Jackson Hole in the United States on Saturday,
Lagarde warned the global economy could sink back into recession
and called for a mandatory recapitalisation of European banks,
through private channels or using public Europe-wide funding.
Her comments drew immediate criticism from the European
Commission, which stressed there was no need for a
recapitalisation over and above what has already been done.
Parisot dismissed the idea of using public funds to boost
bank capital, and said that it was U.S., not European banks,
that had triggered the 2008 financial crisis.
(Reporting by Thierry Leveque and Vicky Buffery; Editing by