But one cannot reason other than balances

Dominique Ferrero, CEO of Natixis, explains why the Bank financing and investment income will display negative revenue in October. He says that the figure of EUR 1 billion of losses on the activities of market "does not correspond to reality", and that he will not resign.

"La Tribune", Natixis have lost EUR 975 million market in October...

These figures are absurd, as is the parallel with the Kerviel case or the case of the CNCE. It did not had dysfunction, not crazy trader, trading positions hidden in Natixis. Like all banks of the place, we have confronted in our activities a month of difficult October markets. Fact remains that, as other banks, we have also been impacted by the decline in the markets and the extreme volatility of the shares, Exchange, CDS, rates. In these conditions of market like no other, some of our activities that I would describe as "normal" or "regular" have been affected and resulted in losses; others took advantage and generated profits. The balance leads to a net product Bank (GNP) negative of the order of EUR 250 million for our bank financing and investment in October.

Specifically, what are the activities that have suffered the most

In essence, it is "old", touring activities to our client base of institutional investors, companies, private management. Certain activities on own account that we manage in extinction (structured products) also suffered from the volatility of markets. I drive at the head of Natixis, a profound change. It cannot be done in a day. Exotic derivatives of rates, we are developing for a decade, have become very difficult to manage because of the ups and downs of the curve of rates. Exotic derivatives of actions were also difficult to manage because of the impossibility of covering positions on existing lines. In a situation of extreme crisis of financial markets, it is not atypical losses.

Nearly EUR 1 billion of gross losses in markets in a month, this is not atypical

I will not write this figure which is not a reality for Natixis. With the crisis, people begin to become aware of the notional amounts processed on markets, variations of intra-mensuelles GDP that may be important. Everything is very fast in one direction or the other. But one cannot reason other than balances. Must always be in the negative signs positive signs, put across the losses the hedging transactions and operations continue to be positive. Once again, this is the total revenue that must be considered. Do not do case changes daily, or monthly. This is not the first time that BFI of Natixis, like some of our colleagues, displays negative income a month. Such was the case in June 2008.

Have you been affected by the Volkswagen case

Non.

The Natixis BFI has recorded a cost of the risk of 327 million euros in the third quarter, including the main for an endowment to the title of the bankruptcy of Lehman Brothers. Where come from the 250 million additional euros that you advertise for the single month of October Talking about provisions on the Russian oligarchs

They come from the usual counterparts of the BFI. For counterparties that you discuss all losses have been fully absorbed.

Will the months ahead be also difficult

Who could say now what happen in six or eight weeks If a group such as General Motors is not saved, the impact on the market could be enormous. Everything that happened on the markets in recent weeks has taken its source in the bankruptcy of Lehman Brothers. It was a fundamental error of the US authorities to let the Bank fail.

In these circumstances, do you plan to go further in the current restructuring

We launched in the spring a load reduction program, which we actively implement and we begin to see the effects. They will be felt in the fourth quarter and the year 2009. Nothing forbids us to go beyond what was announced. We will continue restructuring efforts to the level necessary to lower the standstill of the institution. The current state of capital markets, should accelerate the development of all our activities.

I.e.

We will adapt our strategic plan to the new context and operate new strong inflection. We will reduce, or even abandon the complex activities, to turn more to stream products, go to products easier to manage for us, better adapted to our customers, who generate more recurring revenues. Which will require additional investments, including to build platforms for flow. And also that some of our teams to switch. The details of this new adaptation plan will be provided in the coming weeks.

Why not having earlier this inflection, which calls into question the very principle of the creation of Natixis

This inflection is underway since the creation of Natixis. It is made more difficult and more necessary by the violence of the crisis which we live.

And disposals of assets

Since the announcement of the strategic review in July, we have identified to be transferred assets. The process is started and we hope of course that he goes to his term in the coming months. These assignments should have a very significant impact on our ratios.

May these difficulties have implications for the governance of Natixis

There is no reason. All observers have understood that the loss of October was not attributable to a any dysfunction, such as a trader having exceeded its limits. To our shareholders, they know that employees of Natixis are mobilized to find a recipient capacity.

In the approximation of the Caisses d'Epargne and Banques Populaires, is the future of Natixis in question

Natixis creates and manages of many products and services on behalf of its two networks shareholders. About the BFI, I think that there will always need a bank financing and investment, to fund projects, transfer of risk, hedge rate or foreign exchange variations. It must not throw out the baby with the bath water!

Furthermore, I think that the merger of the Caisses d'Epargne and Banques Populaires will be a great opportunity for Natixis to be more than one shareholder instead of two, which inevitably generates tensions. This new single shareholder will have considerable financial power.

A rating of Natixis still meaning to 1.80 euro action

The decision does not depend on that of me.