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Natixis parent company to guarantee toxic assets

Natixis parent company to guarantee toxic assets

French bank Natixis said Wednesday it continued to loose money in the second quarter, but expects to return to profitability in the second half after its parent company agreed to guarantee toxic assets.
Natixis, whose main owners recently merged, posted a net loss in the April to June quarter of ⁈llion ($1264.81 million), less than the ⁈illion it lost in the same period a year ago. In the first quarter, the net loss was ⁈illion.
Natixis' new parent company BPCE, a merger of Banque Populaire and Caisse d'Epargne, will guarantee losses on roughly ⁈lion ($50.13 billion) of toxic assets to allow Natixis to focus on its new strategic direction.
Natixis has been among the French banks hardest hit by the turmoil in U.S. subprime mortgage markets. The problems prompted French President Nicolas Sarkozy to seek to speed up the merger plans of Caisse d'Epargne and Banque Populaire, which jointly own Natixis.
In a statement, Natixis said it is entering a "new phase" and "operating in an improved and stabilized financial context" after BPCE said it will ringfence the toxic assets.
Natixis has discontinued some of its riskier activities to focus on its investment bank, asset management, and specialized financial services.