• Most Popular
  • Most Shared

SocGen scandal hurts banking sector image: Intesa CEO

DAVOS, Switzerland
Fri Jan 25, 2008 8:08am EST

DAVOS, Switzerland (Reuters) - The dealing scandal at Societe Generale has dealt a new blow to the image of the banking industry already reeling from the subprime crisis, the head of Italian bank Intesa Sanpaolo said.

"It's something that further damages the image of banking at a time when people are already very concerned about risks," chief executive Corrado Passera told Reuters on the sidelines of the World Economic Forum in Davos.

SocGen said a junior employee on its derivatives trading desk earning less than 100,000 euros a year had confessed to carrying out a sophisticated fraud, triggering 4.9 billion euros in losses as his disastrous trades were cancelled in wildly volatile markets. It said it did not know where the trader was.



More from Reuters

Photo

Obama will not rush Afghan troop drawdown

OSLO (Reuters) - There will be no "precipitous drawdown" of U.S. forces in Afghanistan and U.S. troops could still be in the country for years to come, President Barack Obama said on Thursday.

A glass of tap water is served at a restaurant in New York June 10, 2009 REUTERS/Shannon Stapleton

G7 glass half empty

Recovering from a punishing global recession has forced the world's richest nations to pay dearly, prompting subdued growth prospects and delayed sighs of relief.   Full Article 

 Tom Metzold, Vice President of Eaton Vance Management and Senior Portfolio Manager at Eaton Vance, speaks at the Reuters Global Media Summit in New York, December 9, 2009. REUTERS/Brendan McDermid

"Everything's not hunky-dory"

Did the worst downturn in 70 years leave a permanent scar? Top money managers like Tom Metzold examine how a "new normal" will shape things to come.  Full Article