SocGen replaces investment bank chief Mustier
PARIS (Reuters) - The top executive at Societe Generale's (SOGN.PA) investment banking unit, Jean-Pierre Mustier, is being replaced in the wake of the French bank's rogue trading scandal.
Societe Generale said on Friday in a statement that it was appointing Michel Peretie at its Corporate & Investment Bank.
Peretie, formerly with Bear Stearns, will replace Mustier during the third quarter of 2008. Mustier's new functions well be announced later.
The bank statement confirmed what two banking industry sources had told Reuters.
Mustier, once tipped as a future chief executive, was in overall charge of SocGen's investment banking unit in January when the bank disclosed 4.9 billion euros of trading losses which it blamed on unauthorized trades by Jerome Kerviel.
Mustier, recently described as a "key" figure at SocGen by chief executive Frederic Oudea, was expected to remain at the bank on giving up the CIB role at least for the time being.
The shake-up was first reported by French daily La Tribune on its website.
It is the second high-level fallout from the Kerviel scandal after executive chairman Daniel Bouton split his job and transferred his chief executive job to Oudea almost a month ago.
"I am delighted that Michel Péretié is joining Societe Generale Corporate & Investment Banking to continue the development of this core business and enable Jean-Pierre Mustier to take on new responsibilities within the Group," Oudea said in the statement.
Peretie began his career with Banque Paribas in 1980.
