SocGen boss survives and says bank can too

By Sudip Kar-Gupta and Julien Toyer

PARIS (Reuters) - Societe Generale fought off political pressure to sack its chairman on Wednesday after suffering the world's worst financial trading scandal, but the French bank failed to quash persistent takeover speculation.

The bank's board also said it had set up a special committee of independent directors to ensure that the cause and size of its rogue trading losses were fully accounted for.

The panel will be led by a Jean-Martin Folz, former head of French carmaker PSA Peugeot Citroen.

The bank has been in turmoil since revealing 4.9 billion euros ($7.3 billion) of losses, which it blames on rogue share trades by one 31-year-old junior employee, Jerome Kerviel. SocGen's board is keen to fight off potential predator BNP Paribas and asked executive chairman Daniel Bouton and his deputy Philippe Citerne to stay on through the crisis. But its shares rose for a second day on takeover speculation.

Bouton said SocGen was strong enough to stay independent.

Politicians from President Nicolas Sarkozy down have called for sweeping changes in the wake of scandal.

But in his first television interview on the crisis, Bouton said, "The board is asking to stay at the helm of the boat during this storm. I'm a man of duty. I'm not going to jump overboard when the board is asking me to stay to do my duty."

Asked whether he was now the head of a bank which could be taken over, he said "The strong determination of our customers, the strong determination of our staff, is offering an answer."