SocGen Board Stands By Its Execs

Bank gives vote of confidence despite $7.2B losses in fraud
By Sam Gale Rosen,  Newser Staff
Posted Jan 30, 2008 10:52 AM CST
SocGen Board Stands By Its Execs
Societe Generale bank employees stand outside the bank headquarters in a show of support for Chief Executive Daniel Bouton, Wednesday Jan. 30, 2008 in La Defense, outside Paris. The board of scandal-marred French bank Societe Generale met Wednesday as its top executive is under intense pressure over...   (Associated Press)

Defying pressure from the French government, Société Générale's board of directors today unanimously voted to keep co-chief executives Daniel Bouton and Philippe Citerne in their jobs. About 100 employees endorsed the sentiment by leaving the embattled bank's headquarters and standing on the sidewalk in a show of support for Bouton, reports the Wall Street Journal.

The French government has been gunning for Bouton's resignation in the wake of the trading fraud that cost the bank $7.2 billion, but the exec has strong in-bank support. "In the US, Japan or the UK, he would have to go. Here, no," says an employee-elected board member. The bank also plans to set up an independent committee to investigate the losses. (More Société Générale stories.)

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