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French PM: SocGen must remain "great French bank"
PARIS (Reuters) - The French government wants Societe Generale to remain a "great French bank" in the wake of a rogue trading scandal, Prime Minister Francois Fillon said on Tuesday.
"I would like to say to you, and through you to all those listening to us, that Societe Generale is a great French bank and that the government is determined that Societe Generale remains a great French bank," he told parliament.
SocGen said last week it had uncovered unauthorized deals by one of its traders that led to 4.9 billion euros ($7.22 billion) of losses. To help cover the hole in its finances, the bank has launched a 5.5 billion euro capital increase.
The scandal has ignited market speculation that the weakened company might become a takeover target.
"The first priority is to restore confidence (in the bank). To establish confidence, two things are needed. Societe Generale needs to pull off its capital increase, but it must also shed all possible light on the failures (of its systems)," he said.
(Reporting by James Mackenzie; Editing by Crispian Balmer)
