If his scholarship course rather resilient yesterday 4

"Earthquake", "clap of Thunder", "cataclysm". The bankers lacked words, yesterday, to describe the shock caused by Société Générale. The second French Bank revealed have lost almost EUR 5 billion due to the fraud alleged one of its traders. A mystification of considerable magnitude, which is is not reminiscent of the setbacks of the British Bank Barings, running bankruptcy 13 years ago by trader Nick Leeson. Do not arrange, Société Générale also should see further losses related to the crisis of "sub-prime" loans, to 2 billion euros.

These two incidents are not the French Bank at risk: it will still profit on the whole of the year 2007. They are however stupor in a banking world already shaken by the financial crisis. And raise many questions about the future of the Bank and its Chairman, Daniel Bouton, whose resignation was refused by the Board of Directors.

The fraud allegedly committed by a single man, Jerome Kerviel, a thirty-one years old trader who worked since 2000 in one of the defence towers, where the activities of Société Générale markets are installed. According to the explanations of the Bank, it would have taken positions colossal several tens of billions of euros early in the year to bet on an increase in the equity markets. And this by bypassing the control procedures of the institution, which he had acquired a "also intimate that perverse" knowledge, "extremely sophisticated and varied techniques". Its hierarchy have discovered his actions that last weekend.

The Bank has developed three days to unbuckle these positions, between Monday and Wednesday, the operation resulting in a loss of 4.9 billion euros in total. A misfortune never arriving alone, she had result them in turmoil in the markets, the major European stock has sunk by more than 5 Monday. Some wondered even yesterday if these interventions had not exacerbated the collapse in the prices.

Meeting at the headquarters

Société Générale has filed a complaint with the Prosecutor of the Court of Nanterre against its trader for false entries in Bank, use of false and computer intrusions. She removed him from Office, and half a dozen officials of the Investment Bank. Throughout the day, the establishment is best used to reassure its employees, its customers and its shareholders. Daniel Bouton particularly insisted on the fact that the Group would carry out "net profit for the year 2007, from 600 to 800 million euros". Public and regulatory authorities also endeavoured to ease clients and investors, while expressing their astonishment. Several complaints were filed by disgruntled shareholders.

To strengthen its own funds and avoid too heavy degradation of its note by rating agencies, Société Générale will proceed to a capital increase of EUR 5.5 billion, which will be guaranteed by two banks, JPMorgan Chase and Morgan Stanley.

Since yesterday evening, Société Générale executives gathered at the headquarters of the group to reflect on the consequences of this "exceptional fraud". A new Board of Directors will meet by otherwise next Wednesday. If his scholarship course rather resilient yesterday ( 4.14), Société Générale, whose market value has dropped by about a quarter since January 1, seems weakened. Specialists regard it more than ever as a target in a European banking sector battered by the financial crisis. The prospect of a reconciliation with BNP Paribas, with which she had refused to marry in 1999, is in all heads. Daniel Bouton has yet said yesterday that the Bank had the means to continue its "only" way, and that "this terrible accident alter it not strategy."

Daniel Bouton will waive any salary until June 2008, as his number two, Philippe cistern. The test just to cross the General society is "the worst nightmare that any President of Bank fears to live a day", confessait yesterday in Davos, the pattern of Lehman Brothers, Richard Fuld.