SocGen reports record $4.9-bn Q4 loss; may take new writedowns
Societe Generale confirmed a record fourth-quarter loss of e3.35 billion ($4.93 billion) after absorbing a huge rogue trading scandal that has made France's second-biggest listed bank a po-tential takeover target.
By Agencies |
PARIS: Societe Generale confirmed a record fourth-quarter loss of e3.35 billion ($4.93 billion) after absorbing a huge rogue trading scandal that has made France's second-biggest listed bank a po-tential takeover target.
The loss coincided with an internal report acknowledging that better systems might have prevented the costly stock market gambles it blames on junior trader Jerome Kerviel. SocGen, like many of the world's top banks, has also been hit by losses related to a global credit crunch and the bank warned it may make further writedowns in the future.
Executive chairman Daniel Bouton said the 144-year-old firm was determined to ride out the storm as an independent bank, despite reports of a potential bid from long-time suitor and arch-rival BNP Paribas.
���I am completely determined to continue with our strategy because, even taking into account our very bad year in 2007 due to the financial crisis and this fraud, it���s this strategy which creates and will create the most value for shareholders,��� Bouton said in an interview. ���This is my opinion, and it's one that's backed by the board.���
SocGen���s fourth-quarter net loss compared with a e1.18 billion profit a year earlier and a fourth-quarter profit of e1.0 billion unveiled by rival BNP Paribas, although BNP Paribas��� results were down from the year before. ���
The loss coincided with an internal report acknowledging that better systems might have prevented the costly stock market gambles it blames on junior trader Jerome Kerviel. SocGen, like many of the world's top banks, has also been hit by losses related to a global credit crunch and the bank warned it may make further writedowns in the future.
Executive chairman Daniel Bouton said the 144-year-old firm was determined to ride out the storm as an independent bank, despite reports of a potential bid from long-time suitor and arch-rival BNP Paribas.
���I am completely determined to continue with our strategy because, even taking into account our very bad year in 2007 due to the financial crisis and this fraud, it���s this strategy which creates and will create the most value for shareholders,��� Bouton said in an interview. ���This is my opinion, and it's one that's backed by the board.���
SocGen���s fourth-quarter net loss compared with a e1.18 billion profit a year earlier and a fourth-quarter profit of e1.0 billion unveiled by rival BNP Paribas, although BNP Paribas��� results were down from the year before. ���
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