When it comes to finance, Nicolas Sarkozy has three subjects at the front of his mind. First, a burning desire to curb bonuses paid to bankers, especially traders. Second, to turn Paris into an international financial centre, an aim that appears incompatible with the first, unless other governments agree to the French president’s views on bankers’ pay. And third, a belief that no systemically important French lender should fail. Here Mr Sarkozy’s most immediate concern is Natixis, whose long-running troubles may explain his views on the first two.

Sired by the 2006 merger of the investment banking and asset management businesses of two mutual banks, Natixis has always struggled to find its compass. The investment bank had first hoped to use the franchises of its majority shareholders – Caisse de Epargne and Banque Populaire, since merged under the BPCE banner – to mimic its French universal bank peers. Instead, it was lured on to the rocks by the siren call of US and European structured credit, loading itself up with CDOs, mortgage-backed securities, the lot. To save it, BPCE has thrown Natixis a lifeline by guaranteeing €38bn of these toxic assets. The scheme avoids direct intervention by Paris, but as BPCE is 20 per cent state-owned Mr “Tsarkozy’s” hand is evident.