Today CIFG is valued EUR 430 million in our books

The publication, yesterday evening, Natixis quarterly results, its Director General, Dominique Ferrero, details the activity of a quarter by the crisis of the "subprime" and explains why the two reference shareholders have decided, the week last return into their fold the subsidiary of CIFG credit enhancement.

Why have advanced the publication of your results

The two reference shareholders of Natixis having settled the question of the future of CIFG, our credit enhancer, it was important to publish our quarterly results, as soon as possible to minimize the time of uncertainty for investors.

How much will you take on CIFG, to effort for its rescue

These are the two major shareholders of Natixis, and alone, the Federal Bank of popular banks (BFBP) and the National Fund of the crates of d'Epargne (CNCE), which will recapitalize CIFG in the amount of $ 1.5 billion. Effective January 1, CIFG has more impact on our accounts. In the third quarter, the adjustment of its portfolio of marked-to-market credit derivatives led us to see an advance of 200 million before tax, or approximately 140 million. Over nine months, the contribution of CIFG is negative for 85 million. The evolution of this provision in the fourth quarter will be related to the variation of credit derivatives. It is likely that we will record an assignment for the resumption of CIFG valuation by our shareholders. The amount remains to be determined. Today, CIFG is valued EUR 430 million in our books.

Is it not surprising that CIFG is found within the perimeter of central bodies of mutualistic groups

It became urgent to ease the pressure on the course of Natixis since this summer, because of the concerns of the boosters of credit markets. Two solutions available to us. Recapitalize CIFG coming out of the perimeter of Natixis, what we have done, or resign himself to a degradation of its credit notes. In this second case, the consequences would have been disastrous for asset owners investors which note is guaranteed by CIFG. The reputation of Natixis is in would be found irretrievably tainted and the consequences for all the markets could be catastrophic.

Have an assignment of CIFG at Natixis constitution not been more logical

It is true that the credit enhancement is not natural for a bank activity, even if it includes BFI activities. Profitability is low, around 5 to 6, and its complementarity with other trades, is non-existent, or even suspect. Also we very quickly formed the project to merge CIFG with another great actor in the sector to reduce, then eliminate, our exhibition. But the crisis has caught us. However, the idea is not abandoned.

What is the total impact of the crisis on the accounts of the third quarter

The impact of the financial crisis of the summer rose to 407 million euros in total, including CIFG. However, the result of the BFI amounted to 80 million euros with a very dynamic commercial activity and the excellent performance of capital markets and structured finance. In other trades of Natixis, they recorded extremely satisfactory performance over the period. This allows us to save a current profit of 240 million. Revenues from asset management, in particular, increased by 18 and our collection increased by EUR 37 billion over nine months, with no funds for the quarter.

Do you think that the crisis is now behind you

Everything will depend on the evolution of the market in the coming weeks. If the situation was still deteriorating, we, like the others, save additional costs. So, I wish to emphasize that Natixis is evidence of a large capacity of resistance in a degraded environment, even though it's a young structure, full merger, and with a weighting of its American activities greater than its rivals. This crisis, in fine, will reveal the strength of the fundamentals of Natixis.

Do you confirm the objective of increasing the result of 25 between 2005 (pro forma) and 2007

When we set the cap in September 2006, the secondary placement of shares, we made it clear that it was for unchanged market conditions. However we have had, since a financial crisis in three time: a shock in the spring, a crisis of liquidity in August and, today, a generalization of all of the credit crisis. The results of the first months, the progress of integration and synergies are in line with our plan. so, disturbance of the environment make difficult any projection.

Where is the merge process

It is extremely advanced and almost completed. Whether the establishment of teams of management of the Organization of logistics or the creation of the tools, the essence of the path has already been done. In the BFI, the merger of Natexis and Ixis will be carried out on 20 December. And the pattern of this pole, Jean-Marc Moriani, should announce before mid-December of reorganization projects, to further gain in reactivity. Natixis is now a business one, the personality and the clearly defined strategy.

Are you going to reorganize the Executive Board

A House like ours, because she is still young, needs stability. There is a Board of Directors. There is no reason to change. The presence of Anthony Orsatelli, who oversees the BFI and asset management, is necessary because the epicentre of the crisis that we face with trades formerly exercised by Ixis, which he was the boss. He knows so better than anyone. As François Ladam, he oversees successfully seen trades that record for nine months of excellent performance.

The fact that Philippe Dupont is both Chairman of the Executive Board of Natixis and pattern of the Banques Populaires ask it problems on a daily basis

Absolutely no. On the contrary, this may prove to be extremely virtuous, as was the case for reaching an agreement on CIFG, for example. A folder on which there was not any divergence between him and me. He also never was disagreement between us since I assumed my functions.

Have the two shareholders of Natixis reference always supported you

Always. I have set the priorities that I wanted, recruited who I wanted to, made the decisions that I considered necessary.