The eight biggest U.S. money market funds slashed their lending to French banks in September by a staggering 44% overall, with some bank holdings falling even further as worries over the eurozone debt crisis multiplied.
The Thursday Bloomberg Risk newsletter figures revealed that the funds’ holdings in BNP Paribas, Société Generale, Natixis and Credit Agricole dropped to $23.2 billion at the end of the month, from August’s total of $41.5 billion. Natixis was the biggest loser, down 74%, with Credit Agricole next at 64%. Société Generale was down 51% to $3 billion; BNP Paribas dropped 20% to $14.8 billion. The funds have also reduced their holdings in KBC Groep, the biggest lender in Belgium, by 80% to $587 million.
Over the last year, Société Generale funding from U.S. money market funds has dropped 83%; BNP Paribas has fallen 40%.