SocGen Board Stands By Its Execs

Bank gives vote of confidence despite $7.2B losses in fraud
By Sam Gale Rosen,  Newser Staff
Posted Jan 30, 2008 10:52 AM CST
Societe Generale bank employees stand outside the bank headquarters in a show of support for Chief Executive Daniel Bouton, Wednesday Jan. 30, 2008 in La Defense, outside Paris. The board of scandal-marred...   (Associated Press)
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(Newser) – Defying pressure from the French government, Société Générale's board of directors today unanimously voted to keep co-chief executives Daniel Bouton and Philippe Citerne in their jobs. About 100 employees endorsed the sentiment by leaving the embattled bank's headquarters and standing on the sidewalk in a show of support for Bouton, reports the Wall Street Journal.

The French government has been gunning for Bouton's resignation in the wake of the trading fraud that cost the bank $7.2 billion, but the exec has strong in-bank support. "In the US, Japan or the UK, he would have to go. Here, no," says an employee-elected board member. The bank also plans to set up an independent committee to investigate the losses.