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Reuters Breakingviews: SocGen short of options

Wednesday, Feb 13, 2013 - 04:15

Feb. 13 - Societe Generale’s management reshuffle and restructuring won’t raise returns on equity to an acceptable level for investors, says Reuters Breakingviews.

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For all season continues apace after the European banks is subject ends Q4 numbers show the French franc is short of options that's according to -- his breaking news. Joining me is to -- Good to have you this year George I'm -- thirteen will bring more visibility sentencing yet. Shows that down the market doesn't -- Well sometimes go a golf do you and bones is an amendment in this regulation. Things like militiamen ring fencing. And liquidity on. Reforms staple kind of tend -- puede yes and fair assumption. But vehicle with an image problem is that they're not making much money their returns very. They're only about 7%. Ten and see. And that's way belated attempt and small. Investors would expect which is more like some of eleven Pope sent us a big problem. But -- the restructuring that talking about. Does the do you believe does the market believe this is gonna so this program. We'll talk with -- restructuring is that them even if they. Even if it goes well. They still anything film get into Iraq and 10%. Which is still belated small important cycle cost of equity which is a -- hopes that and that's a point at which -- -- -- get happy about it ending and he still. And but that's the main problem facility and they need to get. To that level. In with him to chip and that's what what do you make of the the the reshuffle. On and the and and outrage leaving to go to the World Bank off to just one year I mean what what what's the real story. -- Well I think over the past her is is actually you -- what I said the fat it. If you'll I'm running solitaire and in their number really leave as you can cool but not many of them can actually. Get you to. Way you want to be which is BTU cost -- it to. And that. In months but just because this that's who goes to Kate there really is an oil back threat but frankly. Unit. It goes on that bank it would be -- -- be a bit ahead a new -- police things it difficult to do it. -- sort of throw in ING unemployment benefits you rush and pass option at that threat com. I NG was out this morning as well that was disappointing his prospects in the CFO who seemed it is that cutting costs and other trying to 500 jobs soul of their bounce off stepped off to some dark that Nelson November. Trying to get out of the CFO what's actually changed between then and now and heat heat and I and maybe this is wrong for me to say it was was hoping assault with the side there of they're moving aggressively on line and you need less people that but it might -- responses as they've been heavily into on line. For an on time. What's the story that. -- -- What you say is the units and it is true that they -- an on line but then let's face. Maybe was changed to one of the key things that's changed since the vendors that. One of the key banks and Colin does -- and right next. And there is there is an element in in in what they're saying today and today that ING's in the need to reach into his pockets. Team health plans cover the costs of and as -- as as other banks in in the hole and date so that would be helping -- thing. The kind of fundamental problem ING UC elsewhere in Comas bank and number European banks. They're not making much in the way of revenue greater than men. And haven't in the last couple years city anyway you may you Woodson told news is and is to cut costs and and history as simple as that. I think. Specific programs in the whole multi sixties he was real estate in the house ways and yes collapse but. Basically it does come down to the fat -- -- cut coastal with the. -- that particular. George thank you very much indeed George -- from breaking views. If you wanna watch our US show that comes on every day at 12:30 -- 1730 GMT. I'm -- problems is --

Reuters Breakingviews: SocGen short of options

Wednesday, Feb 13, 2013 - 04:15

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