Frances Finance Minister Francois Baroin confirmed earlier reports that the country would have it's credit rating downgraded one notch to AA+. Speaking to France's TV 2, Baroin became the envy of spin-doctors everywhere, saying:

"I confirm that France has received, like most euro zone countries, a notification of a change of its rating. It's a downgrade, a one-notch change, it's the same agency that downgraded the United States. It means we must follow and amplify reforms. We must be bold. We must preserve employment."

Stay Classy Francois!

Additional Wires: RTRS - FRENCH FINMIN BAROIN SAYS DOWNGRADE IS NOT A CATASTROPHE, AA+ IS STILL A GOOD GRADE

RTRS - BAROIN SAYS THERE WILL BE NO NEW AUSTERITY PLAN BUT GOVT TO PROPOSE STRONG REFORMS

"I've focused most of my remarks today on policy ideas the Federal Reserve has the authority to pursue in order to reduce regulatory burden. One area that imposes especially heavy costs of regulatory burden on community banks, but for which the Federal Reserve no longer has rule-writing authority, is mortgage lending. Community banks have long been a source of funding for mortgages that didn't fit the underwriting criteria to qualify for purchase by the government-sponsored enterprises (GSEs). These loans typically are held on balance sheet rather than securitized. Consequently, community banks retain 100 percent of the credit risk of these loans and have no incentive to make loans without regard to the consumer's ability to pay. But because community banks hold the loans on balance sheet, they may charge higher rates than those for prime GSE loans or include balloon payments to account for the liquidity and interest rate risk of holding the loans in portfolio. Further, community banks with small portfolios do not realize economies-of-scale so their costs are higher. And keeping up with regulatory change can be difficult, especially for banks that rely on purchased software and for loan officers who do not specialize in mortgage lending, but rather make the occasional mortgage loan to satisfy a customer need..."