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Siemens withdraws over half a billion from French banks

SIEMANS withdrew over half a billion euro from two large French banks and transferred it to the ECB in a move indicating increasing nervousness surrounding the European banking system.

The German company now has between €4bn and €6bn held at the central banks facilities, the Financial Times has reported.

The company is said to have withdrawn the funds partly out of concerns about the banking system and partly because they are attracted to the higher interest rates at the ECB.

France's two largest banks, Credit Agricole and Societe Generale, last week had their long-term credit ratings cut by Moody's due to risks increasing on their holdings of Greek sovereign debt.

Siemens refused to make an official statement, the FT reported.

This news comes after S & P cut Italy's credit rating for the first time in five years, sending stock markets and the euro plummeting.

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