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Published February 27, 2008 at 12:50 PM
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Timing, say the sages, is everything. In my inbox Wednesday morning is the February issue of Euromoney Magazine. The cover, "Board stupid: Are bank directors up to the task?" is an excellent question. Inside, under the head, "Finance in the new world order," is a Q&A with the heads of four European banks, one of whom is Nicolas Sarkozy's favorite bank chief, Daniel Bouton of Societe Generale SA. If you consider the evidence of this interview, Bouton occupies an Olympian suite well above the foibles of mere rogue traders, who in fact never merit a mention. Indeed, Bouton appears sanguine about banking's ability to cope with the credit crisis, though, he adds wisely, "some players will be permanently weakened, some will bounce back, and everyone's business model and risk mangement systems will be put to the test."
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Really. Any candidates?
This is an interview that, at almost every point, sends up chuckles. Bouton doesn't think we're in for "a wave of consolidation." Well well. "Accurate valuations are complicated." You think? OK, enough laughs. How could this happen? Clearly there were two possibilities here: Euromoney either did the interview before SocGen realized Jerome Kerviel became a celebrity or the interview was a gift to a good advertiser who refused to approach the rogue elephant in the room. The bigger question is why Euromoney published an interview it said occurred in January and then, even more incredibly, why it e-mailed it out on Feb. 26.
By the way, M. Sarkozy, you'll be glad to know that Bouton likes his board of directors, which he believes is quite expert. The audit committee, he says, "which also handles risk, must be fully informed on an ongoing basis, vigilant regarding market trends and with a membership whose expertise matches the issues at stake." The audit committee is carefully trained, "must have a global vision of risk, as well as a concrete approach." Last year, SocGen took the committee to Romania "to gain a fuller understanding of central and eastern European markets." - Robert Teitelman
See Euromoney article
Comments
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My Credit Mutuel bank account has just been frozen without my prior knowledge by the Bank of France. This was because Societe Generale requested this action. I stopped banking with Societe Generale due to their gross incompetence and a late cheque was presented after the account closure, to value Euros 20 written months before the closure of the account. Any other bank would have called me and said can you send us Euros 20, not Societe Generale, who through sheer vindictivness of the branch concerned took this draconian action. Such things should not happen in a civilised country where one expects to be innocent until proven guilty.
I have due to the account frezzing been unable to access my funds to buy food medication christmas presents or pay household bills.
I previously had my account emptied twice by Societe Generale through incompetence followed by lies to try to cover the incompetence so I left their bank.
Societe Generale have far too much power, are arrogant,grossly inneficient, were, to me, racist (Brit in France) and it is about time BNP or Santander took them over. They can offer good customer service in line with 21 Century.
Buyers beware Societe Generale in its present form
David
France