Reply #8: French bank seeks probe into stock selloff [View All]

http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-11-07-14-11

PARIS (AP) -- French bank stocks remained under pressure Thursday as volatile and nervous traders ignored officials' repeated attempts to assuage fears over their financial health.

A rebound from Wednesday's battering, when rumors about Societe Generale's financial health, gripped markets, proved short-lived and France's bank stocks were back under renewed selling pressure, in another sign that investors remain worried over their exposure to the debt of countries like Greece and Italy, and Europe's ability to deal with its debt crisis.

Analysts were left grasping to identify a single trigger for the sudden reversal.

"There's nothing behind it, its a market of malintentioned speculators trading on pure rumors," said Marc Touati, an economist at French trading firm Assya Compagnie Financiere.