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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
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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.

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 French bank Societe Generale met Wednesday as its top executive is under intense pressure over the loss of...
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)
Societe Generale CEO Daniel Bouton is seen at the Societe Generale headquarters outside Paris in this Jan.24, 2008 file photo. French bank Societe Generale's board of directors decided Wednesday Jan.30, 2008 to keep Chairman and CEO Daniel Bouton in his post, despite mounting pressure over huge trading losses,...
Societe Generale CEO Daniel Bouton is seen at the Societe Generale headquarters outside Paris in this Jan.24, 2008 file photo. French bank Societe Generale's board of directors decided Wednesday Jan.30,...   (Associated Press)
Societe Generale CEO Daniel Bouton, right, and co-chief executive officer Philippe Citerne are seen at the Societe Generale headquarters outside Paris in this Jan.24, 2008 file photo. French bank Societe Generale's board of directors decided Wednesday Jan.30, 2008 to keep Chairman and CEO Daniel Bouton in his post,...
Societe Generale CEO Daniel Bouton, right, and co-chief executive officer Philippe Citerne are seen at the Societe Generale headquarters outside Paris in this Jan.24, 2008 file photo. French bank Societe...   (Associated Press)
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More on the rationale for keeping Bouton
New York Times

 
France • Jérôme Kerviel • Société Générale • Daniel Bouton

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