292 quits in France in addition to the natural retreats442 6 on the prohibition of discriminationFor now Microsoft has remained of marbleBecause since the Fed began to cut rates the euro is more attractive than the dollarPressure however seems to be up a notchEverything is played at the preschool age8 billion with a turnover increased by 86 of GDP in 2008 He could finally reach 2Since 1998 the cantonal vote has lost its autonomySociety conducted in 2007 a turnover of 19Negligence, Yes. Coarse, errors. The Special Committee of the Société Générale yesterday presented before the Board of Directors of the Bank the first lessons from "the Kerviel case", by relying on the report of the inspection of the institution and entrusted to experts of PricewaterhouseCoopers (PWC) audit. At the end of this Council, the sixth in less than a month, a long press release was published in the evening, which summarizes the Middle the report findings and details the chronology of events. In particular the many positions of Jérôme Kerviel, the Bank which the AWM has amputated 4.9 billion EUR 2007 results must publish this morning.
The Special Committee of three directors, chaired by Jean-Martin Folz, is not accusatory. He merely noted the existence of some "weaknesses" in the system of risk control, without involving the hierarchy of Société Générale. As it had done the Lagarde report three weeks ago, so point a number of shortcomings. "The absence of identification of fraud until this date January 18 can be explained by the effectiveness and the variety of the techniques of concealment used by the fraudster, on the other hand by the fact that operators expand not systematically their checks, finally by the absence of some controls that were not planned and that would have been likely to identify fraud", said the report.
However, it would be premature to draw major conclusions. "We are only in the 38th minute of a match which has 90", it insists in the entourage of the Bank. The 40 employees mobilized by the General Inspectorate of the Société Générale and PWC experts have not questioned all the people they wanted to hear, especially the superiors of Jérôme Kerviel, the investigation of the financial brigade priority. "The Inspector General is prohibited to issue conclusions at this stage regarding the responsibility of the perpetrator of the fraud front office hierarchy", according to the report. "The audit be cumbersome and time-consuming, explains in the Bank." "The objective is rather that it is finalized for the General Assembly of the Bank," scheduled from May 27. If the thread of events becomes progressively more readable, all areas of shadow of this case are therefore be informed (see below).
"Turn the page".
At the judicial level, the statement could move fairly quickly. Some predict even a closing of the record before June. Unless some complicity are put on the day, which seems to be the case for the moment. "At this stage of the investigation, no evidence of diversion or internal complicity or external (i.e. the existence of a third party consciously helping the person to conceal his actions) were found", notes the report of the General society. "For the moment, adds a close to the Bank, the broker of Fimat Moussa Bakir appears more as active confidant as an accomplice." The latter not yet was interviewed by two investigating judges responsible for the case, since that he heard "assisted witness". Only Jerome Kerviel has been indicted.
Weakened by this episode, Société Générale would in any case out quickly the judicial Chronicle. Its leaders, Daniel Bouton in mind, mark their commitment to "turn the page", not missing an opportunity to emphasize the ability to rebound from the Bank and its future prospects. This should still be the case today in the Conference call commenting on the results of the year 2007. The Board of Directors yesterday referred accounts marked by the 4.9 billion euros lost due to the operations carried out by Jérôme Kerviel and of 2.6 billion euros of writedowns of assets related to the "subprime".
Results announced this morning
The Bank should announce this morning a net result in more than 80 lower than the 5.22 billion euros earned in 2006, but still nearly EUR 1 billion. The net result share Group 2007 has been estimated ten days ago to EUR 947 million, before its certification by the Commissioners to accounts. The institution will also detail accounts trade by trade, the Bank financing and investment to wipe a loss of the order of EUR 2.2 billion, or almost the amount of recorded profits last year.
Final results known, this Thursday will mark the opening of the subscription period for the capital increase of EUR 5.5 billion launched by the group to reconstruct the own funds. For each share held, the shareholders of the company General are given a preferential subscription right (DPS), four rights necessary to agree a new action issued at a price of EUR 47.50. These DPS will be listed and tradable today on Euronext Paris. Their development should be influenced by purchases of dealers. However, it will give a first indication of the trust that investors have to Société Générale. These days, at the end of the numerous tours of promotion that they were in the main European financial markets, the leaders of the establishment provided that the returns were excellent.
