Rogue trader to cost SocGen $7bn
The logo of Societe Generale is seen a Paris street
Despite the loss, the bank expect to report a net profit, made in 2007
French bank Societe Generale says it has uncovered a fraud by a Paris-based trader which resulted in a loss of 4.9bn euros ($7.1bn; £3.7bn).
It also announced new write-downs of 2.05bn euros related to the sub-prime mortgage crisis in the US.
But it said it would still make a profit of 600m to 800m euros for 2007, despite the blow to its balance sheet.
Trading in the bank's shares, which have fallen by nearly 50% in the past six months, has been suspended.
The bank, one of France's largest, will need to seek 5.5bn euros in new capital to offset the losses. |
