The group Soci\u00e9t\u00e9 G\u00e9n\u00e9rale confirms that they were a victim of an exceptional fraud : A trader, responsible for \u201cplain vanilla\u201d futures hedging on the european equity markets, had taken fraudulent directional positions during 2007 and early 2008 going well beyond the permitted limits on futures.<\/p>\n
His detailed knowledge of control procedures, acquired during his previous functions within the back office administration of the group, enabled him to hide his trades through elaborate fictitious transactions.<\/p>\n
The group claims not to have anymore residual exposure connected to these positions and that the impact of this fraud will amount to 4,9 billion euros.<\/p>\n
The positions of the trader were reviewed and a detailed analysis of all his positions within his department confirmed the isolated and exceptional nature of this fraud.<\/p>\n
The employee who is well aware of the facts, has been relieved of his functions and a dismissal procedure has been put into place. Management has also announced that those in charge of supervision will leave the group.<\/p>\n
All this came on the back of the depreciation on its portfolio of assets linked to the American residential real estate and to the risks of \u201cMonolines\u201d to a total of 2 billion euros.<\/p>\n
Fitch decided to bring down SG?s long term rating.<\/p>\n
The Soci\u00e9t\u00e9 G\u00e9n\u00e9rale will have a capital increase of 5,5 billion euros from a banking pool belonging to JP Morgan and Morgan Stanley.<\/p>\n
In the face of these events, Daniel Bouton, CEO of the group offered his resignation but it was refused by the board of directors.<\/p>\n
As a show of solidarity, Daniel Bouton and his assistant Philipe Citerne gave up their bonus in 2007 and will not receive a salary until June, 2008.<\/p>\n
Dissatisfied and skeptical, the minority shareholders decided to lodge a complaint against X for swindle, breach of trust, forgery and use of forgeries.<\/p>\n
The Bank of France is going to carry out an investigation which will be led by the banking committee.<\/p>\n
BNP Paribas has not revealed any loss that would justify any particular warning to the market.<\/p>\n
The Cr\u00e9dit Agricole did not make a comment: in September, 2007, traders of its subsidiary Calyon had hidden losses amounting to 250 million euros. Six employees had been dismissed.<\/p>\n
Several market operators expressed their surprise at the amounts at stake: it seems difficult to believe that a single person was able to hide such colossal sums.<\/p>\n","protected":false},"excerpt":{"rendered":"
Soci\u00e9t\u00e9 G\u00e9n\u00e9rale has declared itself a victim of an unscrupulous trader who concealed a massive loss of 4,9 billion dollars as well as a depreciation of assets linked to sub-primes to a total of 2 billion
\neuros….<\/p>\n","protected":false},"author":20,"featured_media":20339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1671,1699,1669,1670],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/20341"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=20341"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/20341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/20339"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=20341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=20341"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=20341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}