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April 19, 2008

French Bank Replaces Chief after Rogue Trading Scandal

Filed under: Uncategorized — admin @ 6:50 am

Société Générale, the French bank that was rocked by a multibillion-dollar rogue trading scandal, said late yesterday that Daniel Bouton would step aside as chief executive but would remain nonexecutive chairman as part of a management reorganization, the New York Times reported today. Bouton will be succeeded by Frédéric Oudea, the chief financial officer, who joined the bank’s senior management team last month as a deputy chief executive.  For nearly three months, French politicians have been pressuring Société Générale’s management to take responsibility for nearly 5 billion euros ($7.9 billion) in losses suffered after the bank closed out 50 billion euros ($79.3 billion) in unauthorized bets made by a junior derivatives trader, Jérôme Kerviel.

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