FRENCH Finance Minister, Mr Jean Arthuis is seeking the prosecution of former bosses at Credit Lyonnais after record losses which drove the state owned bank to the brink of bankruptcy.

Mr Arthuis told Le Monde newspaper that he had asked Justice Minister, Mr Jacques Toubon to launch proceedings over allegations of irregularities when Socialist appointed Mr Jean Yves Haberer was chairman of the bank.

Credit Lyonnais, which owns 53 per cent of Woodchester Holdings, is trying to pull itself upright. Mr Arthuis's latest move steps up the pressure on former bosses by focusing the inquiries on those in charge at the parent company rather than the subsidiaries.