SocGen asks French regulator to start inquiry into "stupid and unfounded rumors"

Discussion in 'Wall St. News' started by ASusilovic, Aug 10, 2011.

  1. Societe Generale's CEO dismissed rumors that France's second-largest bank was in trouble and blamed the recent downgrade of the US credit rating for fueling speculation that France might lose its Triple-A status as well.

    "I find it a bit surprising [that] just because one country is downgraded by one notch at the end of the day that others should follow," Frederic Oudea told CNBC Wednesday. "It’s a strange way to think about the situation in the economy."

    Societe Generale's stock plunged Wednesday despite the bank's denial of rumors that its exposure to other European countries threatened its financial stability. Global financial stocks also skidded on worries about the world-wide banking system, fueling the huge selloff on Wall Street.

    Oudea said the rating agencies confirmed France's rating, and so long as France continues to "have an economy that is a balanced one and a government that wants to reduce the public deficit," there's no reason for that rating to change.

    "We're in good hands," he said of French President Nikolas Sarkozy's government.

    While reiterating his defense of France, Oudea restated that Societe Generale has "limited exposure" to banks in Spain and Italy and is on pace to have enough capital set aside to meet Basel III solvency requirements by the end of 2013.

    He would not comment on "stupid and unfounded rumors" about the bank's largest shareholder, European insurer and asset manager Groupama, on whether it needs to raise cash, which in turn could affect the bank's solvency.

    He said he has asked French authorities to investigate how that and other rumors got started today.

    Start the investigation in London and you will find some professional, financial, white collar criminals... :cool:
  2. When President Mahattir from Malaysia complained about a similar thing in the past, the french told him he was just imagining things. And they threw some other insults at him.

    How come that the french are now saying what they denied to Mahattir?

    The conclusion is that the french are either liars, hypocrites or both.

    Basically, the french live on the veto seat in the UN (using the veto as a leverage to get markets from their old colonies and from the poor good folks from Africa).
  3. C6H12O6


    It's not a secret, rumors was started by the Daily Mail

    it seems that the british don't know what else to speak about than the euro, LOL
    British media's propaganda is constantly bashing europe and attributing "safe heaven" status to gilts :D
  4. AK100


    LIke the traders at SocGen have never started or fueled rumours to help generate profits.

    Bankers screaming about unfairness is just sick.
  5. Yep, you are not the only one having noticed the bashing of ENGLISH media against the EURO (Telegraph, Financial Times, Daily Mail). Seems some sort of national sports.

    Maybe, we should take the opportunity and bash out against the UK and the most indebted nation per capita?????
  6. Butterball


    The Brits are doing Club Med a big favor by bashing the Euro. The sooner the PIGS break out of Bundesbank chains the better for their economies.