FACTBOX: SocGen loses$7.1 billion in trader fraud

Thu Jan 24, 2008 10:43am EST
 
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(Reuters) - French bank Societe Generale (SocGen) (SOGN.PA) said fraud by a single trader had caused it a 4.9 billion euro ($7.1 billion) loss. Following are some details on the trader, the fraud and the bank:

THE SCANDAL:

* SocGen blamed a lone, Paris-based trader in his thirties who handled futures contracts on European stock market indices, betting on broad share market movements. His salary was less than 100,000 euros a year.

* The bank was in the process of dismissing him and said his managers would also leave the company.

* SocGen is to raise 5.5 billion euros in fresh capital to strengthen its balance sheet.

* The board rejected a resignation offer from Chairman and Chief Executive Daniel Bouton. Bouton and his deputy Philippe Citerne gave up their salaries for six months.

* The bank announced further write-downs of 2.05 billion euros related to the global credit crunch.

THE BANK:

* Societe Generale was founded in 1864 in the reign of France's Emperor Napoleon III.

* It employs around 120,000 people, more than 50 percent of them outside France, and has 22.5 million customers worldwide.

* It is the Euro zone's seventh largest bank by market capitalization, according to Reuters data.

(Writing by Astrid Wendlandt and Jijo Jacob; Editing by David Cowell)

 

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