Further updates about Societe Generale

February 7th, 2008 • Related • Filed Under

http://www.ft.com/cms/s/517a5fe2-d4f3-11dc-9af1-0000779fd2ac,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html

The US Securities and Exchange Commission is looking at whether Société Générale violated US securities laws as it unwound and revealed its €4.9bn loss from Jérôme Kerviel’s allegedly rogue derivatives trades, the Financial Times has learnt.

The inquiry is at an early stage and the Washington agency might end up concluding that the issues involved are best handled by French authorities because the problems are only tangentially related to the US, people familiar with the matter said.

News of the probe is another blow to SocGen’s capital-raising plans. The bank’s board met last night to decide the timing and terms of its emergency €5.5bn capital increase, which could be launched as early as tomorrow. It is understood that when the capital increase is complete, Daniel Bouton, chairman, could decide to step down, according to people close to the situation. “The subject is no longer taboo,” one said.

Check out this article in the FT talking about speculation about how the US Securities and Exchange Commission will react to the reported losses at Societe Generale, an interesting read.

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