Societe Generale eyes purges over trading scandal: report

PARIS, April 17, 2008 (AFP) – The head of Societe Generale’s corporate and investment banking is to step down along with about a dozen other managers following the rogue trading scandal at the French bank, the Mediapart online newspaper reported Thursday. Jean-Pierre Mustier, a close ally of Societe Generale chairman Daniel Bouton, is expected to leave his post “in the coming weeks”, said Mediapart.

The dismissals would be the first fallout at the bank from the 4.9 billion euros in losses incurred from unauthorised deals by trader Jerome Kerviel, who has been charged in the case, according to the report.

“About a dozen of Kerviel’s managers and superiors” are to be dismissed, according to Mediapart. Attempts by AFP to contact Societe Generale for comment on Thursday were unsuccessful.

Mustier had presented his resignation to Bouton after Kerviel’s deals were uncovered in January, but the chairman had rejected it.

Societe Generale blames 31-year-old Kerviel for the mammoth losses incurred after the bank was forced to unwind more than 50 billion euros of unauthorised deals he is said to have made.

Kerviel has maintained he acted alone but suggested his bosses knew he was dealing with huge sums of money and turned a blind eye as long