Société Générale

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Société Générale Group
SocGenlogo.jpg
Founded 1864
Headquarters Paris, France
Key People CEO Frédéric Oudéa, Chairman Daniel Bouton
Employees 151,000
Products Retail, corporate and investment banking, investment management
Website www.socgen.com

Société Générale - better known as SocGen - is a diverse, Paris-based global financial services company operating in 82 countries. Like many of its competitors, SocGen was hurt by the 2007 collapse of the U.S. subprime mortgage market.

History

SocGen began in May 1864 under a decree from Napoleon III and by 1870 had 15 Parisian branches and 32 in the provinces. The bank established a permanent office in London a year later.[1]

The SocGen Group today has assets of more than €1 trillion[2] and operates as three businesses:

  • Retail Banking and Financial Services
  • Global Investment Management and Services
  • Corporate and Investment Banking[3]

In May of 2014 Société Générale acquired the derivatives broker Newedge from Crédit Agricole. SocGen had a 50 percent stake in Newedge and bought the remaining 50 percent held by Crédit Agricole. SocGen said the full acquisition of Newedge would allow it to offer its customers trading and clearing services for both listed and over-the-counter products globally.[4] Newedge was created in 2008 from a merger of Société Générale’s Fimat unit and the futures brokerage arm of Calyon. [5]

In February 2015 Société Générale Prime Services acquired a minority stake in Global Markets Exchange Group International (GMEX Group) and said it planned to provide execution and clearing services on the exchange.

Key People

"Rogue trader"

In January of 2008, a single futures trader at SocGen, Jérôme Kerviel, placed more than $70 billion in unauthorized derivatives trades, leaving the bank with a $7.2 billion loss, the largest ever by a rogue trader. [6]

SocGen released its first quarter report on May 13, 2008 showing a profit decline of 23.4 percent compared to the first quarter of 2007. The bank had earlier posted a €513 million loss on the US subprime mortgage market and had posted Kerviel's actual losses in the first quarter of '08 back to the fourth quarter of '07.[7] SocGen executives have also proposed a buyback of 10 percent of the group's shares, to be decided at the 2008 AGM in late May.[8]

References

  1. Our History. Societe Generale.
  2. Societe Generale Quarterly Balance Sheet. Reuters.
  3. Societe Generale Group. BusinessWeek.
  4. Breteau to leave Newedge in shake-up. The Financial Times.
  5. SOCIETE GENERALE FINALISES THE ACQUISITION OF NEWEDGE. Societe Generale.
  6. Societe Generale News. The New York Times.
  7. Société Générale profit falls; Crédit Agricole seeks capital. International Herald Tribune.
  8. ibid.. BusinessWeek.