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SocGen Fraud Dominates Davos Talks

Forum delegates worry about effects on trust in financial sector

By Jason Farago, Newser Staff

Posted Jan 24, 2008 12:43 PM CST

(Newser) – The revelation of enormous fraud by a rogue trader at Société Générale pushed other issues aside today at the World Economic Forum in Davos, Switzerland, CNBC reports. A panel on sovereign wealth funds turned into an impromptu discussion on repercussions of the $7.3 billion cover-up. The market turmoil that the SocGen scandal exacerbates led one delegate to say simply, "investment banks are horrendous."

Trust in the banking system might be the biggest casualty of the SocGen fraud, panelists agreed. "First you had subprime, then the bond insurers, and now this," said one banker. Also on hand was French Prime Minister François Fillon, who told delegates the scandal was "a very major case of fraud" but "not tied to the financial markets."

Participants are seen in the main lobby prior to the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Amid a backdrop of concern over the health of the global... (Associated Press)

Former British Prime Minister Tony Blair, left, is seen on a video screen during the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Seated center is United... (Associated Press)

Norway's Minister of Finance Kristen Halvorsen speaks during a working session at the World Economic Forum in Davos, Switzerland, Thursday Jan. 24, 2008. Climate change topped the agenda as well as pursuing... (Associated Press)

Former British Prime Minister Tony Blair, right, shares a word with Chairman of Kissinger Associated Henry Kissinger during a media conference at the World Economic Forum in Davos, Switzerland, Wednesday... (Associated Press)

Secretary General of the United Nations Ban Ki-moon speaks during a working session at the World Economic Forum in Davos, Switzerland, Thursday Jan. 24, 2008. Climate change topped the agenda as well... (Associated Press)

Irish Rock Star Bono, left, and Nobel Peace laureate, former US Vice President Al Gore, shake hands after a plenary session on climate change during the Annual Meeting of the World Economic Forum, WEF,... (Associated Press)

Participants, blurred by the effect of a zoom lens, are seen in the main lobby prior to the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Amid a backdrop... (Associated Press)

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SocGen Fraud Dominates Davos Talks

Forum delegates worry about effects on trust in financial sector

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Forum delegates worry about effects on trust in financial sector

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OTHER STORIES ON OUR RADAR

bank fraud • World Economic Forum • Davos • François Fillon • Société Générale

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Protesters Occupy Davos —in Igloos

Group set to protest World Economic Forum

Davos Brimming With Optimism for 'New Reality'

But rising food prices, political uncertainty are cause for concern

Davos: Old Boys' Club Makes Firms Send Women

World Economic Forum imposes quota

Bill Gates Pledges $10B for Vaccines

Largest charitable donation ever aims to save 8M children's lives

Bill and Vlad Pal Around Davos

Sec. of State's hubby wastes no time slipping into global role

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Newser By Users

Community

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What is Newser?