CORRECTED - TOPWRAP 7-European, U.S. banks suffer, recession a reality

(Corrects paragraph 10 to say that Midwest Banc Holdings would sell preferred shares to the U.S. Treasury in return for $85.5 million of capital)

* SocGen, HBOS, Midwest Banc and Commerzbank suffer

* European Commission says euro zone in technical recession

* South Korea announces $11 bln stimulus, Germany to follow

* Asian stocks up 6 pct, Europe flat, Wall St set to climb (For more on the financial crisis, click [nCRISIS])

By Mike Peacock

LONDON, Nov 3 (Reuters) - Profits evaporated at leading banks on Monday and authorities worldwide pressed on with efforts to temper a recession that policymakers said had become reality for much of the globe.

The European Commission said the 15-nation euro zone was in a technical recession and economic growth would come to a virtual standstill next year. It called for coordinated action.

In Jerusalem, Richmond Federal Reserve Bank President Jeffrey Lacker said the U.S. economy was contracting. Data last week showed it shrank at a 0.3 percent annual rate in the third quarter, its sharpest squeeze in seven years.

"I think it's definitely a recession at this point. How deep, how steep, and long it's going to be is uncertain," said Lacker, who will become a voting member of the Fed's interest rate-setting committee next year. [ID:nL2408917]

French bank Societe Generale (SOGN.PA) reported an 83.7 percent drop in third-quarter net profit. [ID:nL2427993]

Net profit fell to 183 million euros ($234 million) with losses from the collapse of U.S. bank Lehman Brothers and other writedowns costing it 1.208 billion euros in pre-tax income.

Germany's second-biggest bank, Commerzbank (CBKG.DE), said it would take an 8.2 billion euro capital injection from the state and another 15 billion to secure refinancing. It posted a third quarter net loss of 285 million euros. [ID:nL3543865]

Britain's biggest home lender HBOS Plc HBOS.L raised its hit from the value of risky assets and bad loans to over 5 billion pounds ($8.14 billion) as its takeover partner Lloyds TSB (LLOY.L) predicted a sharp fall in profits. [ID:nL3542383]

Lloyds stepped in to buy HBOS in a government-brokered deal after HBOS was hit by the crisis and concerns about its exposure to Britain's weakening housing market.

In the United States, Illinois-based Midwest Banc Holdings Inc posted a $159.7 million third-quarter loss, and said it obtained preliminary approval to sell preferred stock to the the U.S. Treasury in return for $85.5 million of capital.