But the bulk of those affected have claims against French banks.

The money was paid, but the French bank refused to return the bonds.

In the early 1990s it was the largest French bank, majority state-owned at that point.

Yet that is exactly the treatment most big French banks need.

"If French banks want to be among the top players - the way we did it in insurance - they needed to change."

He also planned to gain controlling interest in a French bank.

Lodestar's relationship with the French bank also dates back some time.

French banks have also seen their bad debts rise swiftly.

The loss is the largest ever for a French bank.

But the firm, a subsidiary of the big French bank, has more than 2,000 clients.