Sarkozy: Strategic Fund To Start Within Weeks · French President Nicolas Sarkozy said late Thursday that his government will establish a strategic fund in three weeks' time to protect domestic industries battered by the financial crisis.  The government could potentially inject $130 billion into the fund. (Reuters)

Keller: A New Breed of Sovereign Wealth Fund? [ANALYSIS] · Brett Keller of the Oxford International Review argues that French President Nicolas Sarkozy's latest proposal to establish a sovereign wealth fund to protect European industries from foreign acquisition represents an entirely new brand of economic isolationism. (Oxford International Review)

Goldman, Morgan Stanley Hit By VW Exposure Rumors · Morgan Stanley and Goldman Sachs shares fell sharply Tuesday on speculation the Wall Street firms might have been short-squeezed by trades involving German automaker Volkswagen. Societe Generale's shares also fell amid loss rumors, but the banks denied exposure to the automaker. (Reuters)

Sarkozy To Create Fund To Protect French Companies · French President Nicolas Sarkozy announced Thursday that France will create a sovereign wealth fund to "massively intervene" each time "strategic" domestic companies need shareholder equity.  On Wednesday, he proposed European nations shield companies pressured by the financial crisis from foreign acquisitions. (Bloomberg)

Sarkozy Calls For Halt To Foreign Ownership · French President Nicolas Sarkozy said Tuesdayeach European country should launch its own sovereign wealth fund to take stakes in key domestic industries, arguing the credit crisis and low share prices place Europe's most prominent industries in imminent danger of foreign acquisition. (The Times)

Chrysler Explores Renault-Nissan Merger · Cerberus Capital, majority owner of Chrysler, is reportedly in talks to sell a minority stake of the Detroit automaker to Japan's Nissan as continued credit-market worries complicate its merger discussions with General Motors. (WSJ)

Bernard-Henri Lévy Opines On U.S. Tolerance · The French pro-American leftist, Bernard-Henri Lévy, warns that the U.S. should not be tolerant of radical Islam -- and explains why Obama is the better candidate. (Salon)

France To Invest $14B In Top Six Banks · French Finance Minister Christine Lagarde announced Monday her government will buy $14 billion in subordinated debt from the nation's six largest banks, including BNP Paribas and Societe Generale, on condition that they increase lending to companies and households. (Bloomberg)

Sarkozy’s Bank Account Raided In Internet Scam · French President Nicholas Sarkozy was the victim of bank fraud in September when Parisian thieves obtained confidential passcodes to his personal account.  Using the internet, the thieves managed to withdraw small slices of his $260,000 annual salary. (The Telegraph)

France’s Lagarde Calls For “Special Audit” Of French Banks · France's Finance Minister Christine Lagarde called for a "special audit" of all French banks Monday, days after Caisse d'Epargne disclosed an $804 million trading loss. The bank's chairman, chief executive and finance director all resigned late Sunday following the disclosure. (The Times)

IMF Probes Chief Over Ties To Subordinate · The International Monetary Fund has launched an investigation of its managing director, Dominique Strauss-Kahn, after allegations he abused his authority during an affair with a subordinate. The probe comes as the IMF tries to help developing countries withstand the global financial crisis. (WSJ)

EU Nations Commit $1.5 Trillion To Backstop Banks · France, Germany, Spain and Austria pledged $1.5 trillion on Monday to take equity stakes in banks and guarantee deposits, less than a day after agreeing to collectively stablize the European banking system. (Bloomberg)

European Leaders Agree To Crisis Plan · European nations agreed late Sunday to take equity stakes in distressed banks and guarantee bank lending for periods of up to five years in a bid to jump-start frozen credit markets.  Officials declined to put a price tag on the plan. (NYT)

Bush Meets G7 Ministers, No New Strategy · President Bush met with financial officials from the wealthy Group of Seven countries and pledged a global response to the credit crisis. (Washington Post) But he offered no new strategies in the foreshortened meeting, lasting only a half-hour.

EU Leaders Plan Financial Summit · Leaders from Britain, France, Germany and Italy will hold a banking summit in Paris to discuss EU response to the financial crisis and debate possible bailouts for some banks. (BBC)