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Societe Generale will lose because of risky investments

This entry was posted on Monday, May 4th, 2009 at 08:11 and is filed under Economy, Finance, Investment, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

French bank Societe Generale denied information appeared in an article published by the newspaper Liberation, which shows that French bank would record a loss between 5 billion and 10 billion euro as a result of risky investments made by Department of Administration Division of assets.

Within a statement, the bank reiterated that the net profit recorded last year, amounted to 2 billion euro. According to article published in French newspaper Liberation, SocGen would have made operations of writedown (reduction of the amount of active accounts) amounted to 5 billion euro last year as a result of transactions made within a division, staying while with the same volume of harmful products.

Writedown operation, which writes French newspaper, had approximately the same value with the loss of 4.9 billion euro recorded by the bank last year in a scandal concerning of series of illegal transactions carried out by former employee Jerome Kerviel.

The Bank officials have stated that the article appeared in Liberation is without any basis. “Societe Generale denies in a formally way the information published by Liberation”; is shown in a statement issued by the bank.