Concerns rise about Societe Generale
France’s second largest bank, Societe Generale, and parent of the Romanian bank, (BRD) has real problems. As more information about Societe Generale’s losses in the credit market scandal becomes public, its shares are falling across several European exchanges from Berlin to Paris. On Friday, SOGN Paris shares closed down 2.28 percent at 76.22 Euro.
Standard & Poor criticizes Societe Generale’s lack of risk management strategy and security deficiencies as a bigger problem than possible writedown losses from the US issue. Last month, Jerome Kerviel, a young trader for Societe Generale, caused a 4.9 Billion Euro loss.
In 1995, Nick Leeson bankrupted the British bank, Barings, after he lost $1.38 billion on Asian futures markets. The loss wiped out the bank’s cash reserves and brought it into bankruptcy overnight.
With the outlook for Societe Generale in the negative, customers have reason to be concerned.
See the bad news in the video below.
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