Capital punishment

France’s banks and government have not communicated well over the recapitalisation part of the Europe-wide rescue package. Markets this week punished Credit Agricole and BNP Paribas shares when rumours started flying that the banks would apply for part of the E40bn the French government has set aside to boost banks’ balance sheets. The government needs to spell out the details to reduce the uncertainty. Agricole and BNP rushed to assure markets that they wouldn’t need the money...