PARIS |
(Reuters) - French President Nicolas Sarkozy has talked tough on banks this year but all signs are he has agreed to go easy where it matters -- on forcing increases in their capital.
Sarkozy was one of the hits of this year's World Forum meetings in Davos, telling JPMorgan Chase chief Jamie Dimon the global crisis had shattered trust in big players and had proved they needed regulation.
But while he has saddled his own banks with more tax on bonuses and balance sheets, he has been softer than neighbouring Switzerland or Britain when it comes to forcing lenders to raise their capital base and discouraging risk-taking, analysts say.
"The capital positions of large French banks are now weaker than those of European peers ... even though they entered the financial crisis with stronger capitalisation," Standard & Poors analyst Elisabeth Grandin said.
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