Two French banks discuss combining

PARIS (AP) -- French bank Caisse d'Epargne says it is in talks about combining with rival Banque Populaire in a deal that would create a huge French banking group.

The announcement on the bank's Web site Wednesday comes amid massive uncertainty over the future of banks across Europe and in the United States.

Caisse d'Epargne says its board had authorized the bank's leadership to "undertake discussions" with the Banque Populaire Group toward a combination that would allow them to create France's second biggest banking group.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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