Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook

Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

By Jason Farago, Newser Staff

Posted Jan 29, 2008 12:11 PM CST

(Newser) – Wounded Société Générale is looking more and more like a takeover target, prompting France's prime minister to jump into the fray today and say the government would defend the country's second-largest bank against hostile raids, the Wall Street Journal reports. With a $7.1 billion loss from fraudulent trades shaking confidence in the bank and its stock price plummeting, some analysts are predicting a breakup, Reuters reports.

Given the bank's size and mix of businesses, it may be too unwieldy a target for any single bidder, especially in the current difficult financing environment, analysts said. Some are touting the model of Dutch ABN AMRO, which agreed last year to be broken up, with Bank of America taking its US operations and three other banks acquiring remaining units. But France's largest bank, BNP Paribas, and Credit Agricole are also circling.

French Finance Minister Christine Lagarde gestures while speaking during a working session at the World Economic Forum in Davos, Switzerland, Saturday Jan. 26, 2008. (Associated Press)

People enter the headquarters building of French bank Societe Generale, Thursday Jan. 24, 2008, outside Paris. Societe Generale said Thursday it has uncovered a euro4.9 billion (US$7.14 billion) fraud,... (Associated Press)

Daniel Bouton, CEO of French bank Societe Generale, reacts during a press conference at the bank's headquarters, Thursday Jan. 24, 2008, outside Paris. Societe Generale said Thursday it has uncovered... (Associated Press)

Pedestrians walk past a branch office of French bank Societe Generale, Thursday, Jan. 24, 2008 in Paris. Societe Generale said Thursday it has uncovered a euro4.9 billion (USD7.14 billion) fraud, one... (Associated Press)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Sarkozy Unveils 'Robin Hood' Tax

Financial transactions to be taxed starting this summer

(NEWSER) - With the French presidential election just three months away, Nicolas Sarkozy took to the airwaves last night to tell voters about a tax hike. The president announced a sales tax rise from 19.6% to 21.2% and a new "Robin Hood" tax on financial transactions, the BBC reports. Sarkozy said he wants to "create a shockwave" with the 0.1% levy and he hopes other European countries will soon follow his lead. More»

France Toughens Citizenship Gauntlet

Now citizens must pass test of language, 'values'

(NEWSER) - Bad news, Francophiles: It just became harder to become French. Nicolas Sarkozy’s government has just thrown up some tough new hurdles for would-be French citizens, requiring them to pass a difficult language test (foreigners will need to speak French at the level of a French 15-year-old) and swear allegiance to "French values," the Los Angeles Times reports. The new rules, which went into effect on Jan. 1, also forbid the new citizens from claiming “allegiance to another country while on French soil,” though dual nationality is still permitted. More»

France's Woman of Year: DSK Wife

Poll finds Anne Sinclair more popular than husband's successor at IMF

(NEWSER) - Standing by her man has made Anne Sinclair a very popular woman in France. Dominique Strauss-Kahn's wife has been named as woman of the year by a French women's magazine after topping an opinion poll, the New York Post reports. With 25%, Sinclair came out ahead of Christine Lagarde, Strauss-Kahn's successor as IMF chief, who scored 24%. Tristane Banon, who accused DSK of attempted rape, came in last in the poll, with 4%. More»

Snub? Sarkozy, Cameron Have Handshake Fail

Even body language is under scrutiny at euro summit

(NEWSER) - Britain's Daily Mail is calling it "Le Snub!": Reading much (maybe too much?) into the body language of Nicolas Sarkozy and David Cameron, it says the French president dissed the UK prime minister by blowing off Cameron's handshake at today's high-stakes European Union summit. (Britain isn't going along with the French-backed pact.) The Telegraph isn't so sure about it being a snub, noting that the men had shaken hands a bit earlier—but it's still happy to play up the video posing the question. See for yourself. More»

Sarkozy: Change—or Kiss Eurozone Goodbye

At odds with Germany over ECB, deflation, budget enforcement

(NEWSER) - French President Nicolas Sarkozy yesterday called for changing the eurozone treaty to make a tighter, stronger union, and demanded more budget discipline, increased help for foundering economies, and replacing countries' veto rights with qualified majorities, reports Reuters . He also called for the European Central Bank to be more interventionist and fight possible deflation. "Let us not hide it, Europe may be swept away by the crisis if it doesn't get a grip, if it doesn't change," he warned. "We don't have the right to let such a disaster happen." More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

OTHER STORIES ON OUR RADAR

Nicolas Sarkozy • France • bank fraud • Jérôme Kerviel • Société Générale • Christine Lagarde

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Sarkozy Unveils 'Robin Hood' Tax

Financial transactions to be taxed starting this summer

France Toughens Citizenship Gauntlet

Now citizens must pass test of language, 'values'

France's Woman of Year: DSK Wife

Poll finds Anne Sinclair more popular than husband's successor at IMF

Snub? Sarkozy, Cameron Have Handshake Fail

Even body language is under scrutiny at euro summit

Sarkozy: Change—or Kiss Eurozone Goodbye

At odds with Germany over ECB, deflation, budget enforcement

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Breakup Rumors Swirl Around SocGen

Fraud-plagued French bank may be too big for single bidder

Bookmark & Share

OTHER STORIES ON OUR RADAR

Nicolas Sarkozy • France • bank fraud • Jérôme Kerviel • Société Générale • Christine Lagarde

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Sarkozy Unveils 'Robin Hood' Tax

Financial transactions to be taxed starting this summer

France Toughens Citizenship Gauntlet

Now citizens must pass test of language, 'values'

France's Woman of Year: DSK Wife

Poll finds Anne Sinclair more popular than husband's successor at IMF

Snub? Sarkozy, Cameron Have Handshake Fail

Even body language is under scrutiny at euro summit

Sarkozy: Change—or Kiss Eurozone Goodbye

At odds with Germany over ECB, deflation, budget enforcement

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?