SocGen CEO Resigns Over Rogue Trader

Bouton steps down at last; future remains grim for French bank
By Jason Farago,  Newser Staff
Posted Apr 18, 2008 4:59 AM CDT
Daniel Bouton, chairman of Societe Generale and president of the French Banking Federation, talks about the financial crisis and the regulation of the banking systems at the finance commission of the...   (AP Photo/Jacques Brinon)
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(Newser) – The CEO of Société Générale will step down, at last bowing to pressure in the wake of the $7.8 billion rogue trading scandal. Although investors and politicians—including French President Nicolas Sarkozy—had demanded Daniel Bouton's resignation immediately after the revelation of Jérôme Kerviel's massive fraud, the bank had insisted he stay on to keep SocGen from collapse, reports the Financial Times.

The new CEO of France's second-largest bank will be Frédéric Oudéa, 44, since Bouton's chosen successor was tarnished by the Kerviel scandal. SocGen has tried to put a brave face on the Bouton resignation, saying it is "turning a page." But predators continue to circle SocGen, and one insider told the newspaper that a recent internal report had "severe" conclusions about the bank's future.