France Rejects U.S. Bid to Enact Bank-Rescue Plan, Lagarde Says

By Sandrine Rastello

Sept. 22 (Bloomberg) -- French Finance Minister Christine Lagarde said France isn't going to enact its own bank-rescue plan, rejecting an effort by U.S. Treasury Secretary Henry Paulson for allies to draw up plans comparable to his $700 billion bailout.

``Americans ask for other countries to take measures where it's opportune,'' Lagarde said on BFM Television today. ``We have decided to take no other measure than banning short- selling'' practices.

The bankruptcy of Lehman Brothers Holdings Inc. will cost French banks 1.5 billion euros ($2.2 billion), Lagarde also said, adding that French banks are ``much more solid than American banks.''

Lagarde said finance ministers from the Group of Seven nations are planning a conference call to ``support'' Paulson's plan.

Paulson said yesterday that he's confident several countries will take steps similar to those adopted in the U.S. ``We are talking very aggressively with other countries around the world and encouraging them to do similar things, and I believe a number of them will,'' Paulson said on the ABC News ``This Week'' program.

To contact the reporter on this story: Sandrine Rastello in Paris srastello@bloomberg.net