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Volatility to Continue: Investment Banker

Volatility is here to stay, the boss of French investment bank Natixis has told CNBC in an exclusive interview on Thursday.

“I do see that these markets will continue to be volatile during the year 2011,” said Laurent Mignon, the CEO of Natixis who refused to say how he felt the market would trade over the rest of the year.

“For the market, I will not dare to do so,” Mignon said.

The comments came as Natixis reported a 12 percent fall in first quarter net profits that beat forecasts following a strong performance at its capital markets division and lower loan losses.

“For Natixis, we have decided not to give guidance. I think we have given guidance on our strategy plan, and we obviously stick to that, and what the first quarter shows in terms of growth of revenue, globally for the bank, is that we are well in line with the plan,” Mignon said.

“Maybe we can say that they were… could be seen as ambitious two years or a year ago and now, I would say, they are cautious,” he added.

Liquidity Fears

With little or no exposure to the problems in Greece, Ireland and Portugal, Mignon dismissed fears of a liquidity crisis for euro zone banks amid worries that too many are still living on European Central Bank support in the repo market.

“The fact that there are a number of banks going to the ECB repo, I don’t think it is a sign of a liquidity crisis," he said, adding that not the number of banks at the repos was important but the amount of capital taken.

“Globally, I don’t see any specific element of banking liquidity crisis today. I think there’s plenty of liquidity in the market today. That everybody is preparing itself for the new liquidity ratio, and no, I don’t see a liquidity crisis for the time being, conditions that are pretty smooth,” he added.

- Guillaume Desjardins, assistant producer CNBC.com, contributed to this story