Commercial Banking

Topic of presentation :SOCGEN style Click to edit Master subtitle

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Socgen Intro..

Society General S.A. is a large European Bank and a major Financial Services company that has a substantial global presence.

One of the oldest banks in France.

It is no. 2 French bank behind BNP Paribas and the no. 8 bank in the European zone ahead of Credit Suisse. Society general has been ranked as one of the world's most admired companies to work in.

The long term debt of the group is currently ranked A by S&P, Aa3 by Moody's and A+ by Fitch.

Has been a center of controversy and scandals

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Reasons for 2008 demise

Significant deficiencies in internal controls and relaxed policies.

unauthorized trading activities

computer hacking and the breach of trust involving a conscious effort by the rogue trader to deceive his managers.

Jerome Kerviel is accused of creating a huge loses by a single unauthorized trader in financial history. In the course of 2007 he made unauthorized trade worth 30 bn. on European stock market futures, winning 1.4 bn. by the end of the year.

The bank stated that he deliberately set out to lose money in 2008 to bring down the suspicious size of his 2007 earnings.

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Thanks

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