Societe Generale and its subsidiaries are engaged in banking and finance activities, which are divided into three divisions: Retail Banking & Specialized Financial Services, Corporate & Investment Banking, and Asset Management, Private Banking & Securities Services: Co.'s activities are managed... More
Wednesday, Mar 510:40 AM
Wednesday, Mar 510:40 AM| 3 Comments
- New York resident Kevin Maher files suit against the five banks who set the London gold fix each day, accusing them off price manipulation. The five: Deutsche (DB), Barclays (BCS), Scotiabank (BNS), HSBC, and SocGen (SCGLY).
- The setting of the benchmark occurs twice a day in a teleconference through something resembling open-outcry. There are, of course, a number of investigations ongoing about illegal manipulation, and an academic study has found what it deems to be good evidence of collusion in the afternoon fix.
Tuesday, Mar 411:08 AM
Tuesday, Mar 411:08 AM| Comment!
- Boston-based Charles River Associates was hired by Deutsche Bank (DB +1.7%) several months ago, reports the WSJ, to assess the extent of the bank's participation in the alleged rigging of the London gold fix.
- Gold is traded around the clock, but there is no central source for prices, and a group of five meets twice a day in London to determine a snapshot, or fix. Other than Deutsche, the others are Barclays (BCS), HSBC, Scotiabank (BNS), and SocGen (SCGLY).
- Deutsche last month announced its exit from the group, and Standard Chartered (SCBFF) reportedly is the front-runner to replace it.
- Last week: A draft research paper finds strong evidence of mischief.
Wednesday, Feb 512:35 PM
Wednesday, Feb 512:35 PM| 2 Comments
- Ben Lawsky, New York's financial services superintendent, reportedly has opened an investigation into manipulation of the currency markets by large banks and is requesting documents from more than a dozen institutions.
- Lawsky is said to have asked for documents from Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), Lloyds (LYG), Royal Bank of Scotland (RBS), Societe Generale (SCGLF, SCGLY) and Standard Chartered (SCDRF, SCBFF).
Monday, Feb 33:44 AM
Monday, Feb 33:44 AM| 4 Comments
- The Department of Justice has joined an expanding probe of banks, private-equity firms and hedge funds over the possible violation of bribery laws involving Libya's state investment fund prior to the rebellion against Muammar Gaddafi in 2011, the WSJ reports.
- The investigation originally focused on Goldman Sachs but now includes Credit Suisse (CS), JP Morgan (JPM), Société Générale (SCGLF), Blackstone (BX) and hedge-fund operator Och-Ziff Capital Management Group (OZM).
- A criminal probe is taking place in parallel to an SEC civil investigation.
- The Libyan Investment Authority invested sums of as much as $1B in funds operated by the firms being investigated, except Blackstone.
Wednesday, Dec 42013, 4:57 AM
Wednesday, Dec 42013, 4:57 AM| 1 Comment
- The EU Commission will reportedly fine a group of leading multinational banks €1.7B for rigging inter-bank interest rates in what would be the largest antitrust penalty that the commission has ever levied.
- The banks to be fined include all the old favorites - Citigroup (C), Deutsche Bank (DB), Royal Bank of Scotland (RBS), JPMorgan (JPM) and Barclays (BCS), as well as Societe Generale (SCGLF).
- The banks have admitted liability in return for a 10% reduction in their punishment.
- However, HSBC (HSBC) and Credit Agricole (CRARF) are contesting the proposed sanctions from the EU and are set to be formally charged today.
- UBS (UBS), which paid $1.5B to U.S. and U.K. authorities for similar sins, is escaping a penalty, as it alerted the EU to the Libor and Tibor cases.
- EU Competition Commissioner Joaquin Almunia is due to announce the penalties at a press conference at 5:30 ET.
Tuesday, Nov 262013, 4:12 AM
Tuesday, Nov 262013, 4:12 AM| 10 Comments
- The benchmark rate for the $20T gold market has become the latest focus of regulator scrutiny, with the U.K.'s Financial Conduct Authority looking at how the "London fix" is set, Bloomberg reports.
- In a process that goes back to 1919, the rate is published twice a day following a telephone call between Barclays (BCS), Deutsche Bank (DB), Bank of Nova Scotia (BNS), HSBC (HSBC) and Societe Generale (SCGLY).
- The process can last up to over an hour, with participants being able to use the information from the call to trade gold and its derivatives while the discussion is taking place.
- "It's controlled by a handful of firms with a direct financial interest in where it's set, and there is virtually no oversight - and it's based on information exchanged among them during undisclosed calls," says Rosa Abrantes-Metz of New York University.
- ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, GLTR, DGZ, AGOL, DBP, GLDI, DGLD, WITE, FSG, TBAR, JJP, UBG, RGRP, BLNG
Thursday, Nov 142013, 11:57 AM
Thursday, Nov 142013, 11:57 AM| Comment!
- Litigation has cost global investment banks $44B since the start of last year and $13.8B alone in the last quarter, says the team at KBW, and the civil claims could drag on for another decade and cost another $100B. The probes into interest rate and foreign exchange manipulation are likely to sum to the area of $72B, and still un-resolved mortgage issues could add another $24B.
- As loud as that $100B sounds, it would be a notable slow-down from the run rate of the past 22 months, says KBW's Andrew Stimpson, who adds litigation costs are now "part of the fabric of investment banking costs."
- Everybody's favorite legal target, JPMorgan (JPM) is KBW's favorite bank pick as it looks to start 2014 "with a cleaner slate" than its peers (SocGen SCGLY is also a top pick).
- Related ETFs: IAI, KCE, KBWC
Thursday, Nov 72013, 1:46 PM
Thursday, Nov 72013, 1:46 PM| 2 Comments
- The bank could be fined by year's end, reports Bloomberg, and, according to a source, is expected to settle in exchange for a 10% discount on the penalty.
- At issue is a probe into the rigging of yen-based Libor ((Tibor)) submissions. Japanese regulators in 2011 ordered CItigroup (C) and UBS to suspend some operations after the banks' staff were found to have attempted to influence the rate. Tom Hayes - a former trader at both banks - is facing criminal charges in the U.K.
- Separately, Credit Agricole (CRARY) and HSBC (HBC) have walked away from the EU settlement table as it relates to charges over the rigging of Euribor. Barclays (BCS), Deutsche Bank (DB), JPMorgan (JPM), RBS, and SocGen (SCGLY) remain in settlement talks and fines could come as soon as next month.
Tuesday, Nov 52013, 12:32 PM
Tuesday, Nov 52013, 12:32 PM| 1 Comment
- Set to be fined, reports Reuters, are Deutsche Bank (DB), JPMorgan (JPM), HSBC (HBC), RBS, Credit Agricole (CRARY), and SocGen (SCGLY). At issue is the supposed rigging of the benchmark European short-term interest rate, Euribor. Not being fined, says a source, is Barclays, which has had its issues with Libor.
- Some banks have already agreed to settle in exchange for a 10% haircut in their fines, while others are still in negotiations over the size of their penalty. EU rules allow fines for up to 10% of a company's global revenue in these cases, but something much further down the scale seems likely here.
- Banks need to be careful about admitting guilt as part of any settlement as it then opens them up to investor lawsuits.
- In addition to Euribor, the EU has ongoing investigations into benchmark rates tied to the yen and Swiss franc.
Tuesday, Sep 242013, 3:43 AM
Tuesday, Sep 242013, 3:43 AM| 2 Comments
- The National Credit Union Administration is suing JPMorgan (JPM), Credit Suisse (CS), UBS, Societe Generale (SCGLF.PK), Lloyds Banking Group (LYG), Royal Bank of Canada (RY), and several others on behalf of five failed credit unions.
- According to the suit, the banks' alleged manipulation of LIBOR caused the defunct credit unions to receive "less in interest income than they were otherwise entitled to receive."
Monday, Aug 192013, 10:43 AM
Monday, Aug 192013, 10:43 AM| Comment!
- With European stocks moving back into favor, JPMorgan offers up its 32 top picks.
- The broad thesis suggests rising yields - rather than being a headwind to equities - are a good thing as they'll "jumpstart the long-awaited reversal in flows" from fixed income to stocks. The team also prefers value over growth, suggesting 6 years of value underperformance is about to change. Stay away from defensive sectors - telecoms, staples, healthcare, utilities - as they display a negative correlation to bond yields.
- Among the picks: TOT, RIO, EADSY.PK, EADSF.PK, BAYRY.PK, AZSEY.PK, SCGLY.PK, UBS, ESYJY.PK, VLKAY.PK, PUBGY.PK.
Thursday, Aug 12013, 6:19 AM
Monday, Jul 292013, 9:46 AM
Monday, Jul 292013, 9:46 AM| 6 Comments
- Caterpillar (CAT +1.3%) agrees to repurchase $1B in stock from Societe Generale (SCGLF.PK).
- Caterpillar expects to complete the buyback in September.
- The deal brings Caterpillar's total repurchases to $2B in 2013 after it announced a similar $1B buyback in April. That deal was completed in June. (PR)
Wednesday, Jul 172013, 12:53 PM
Wednesday, Jul 32013, 8:03 AMA check on some European banks (EUFN) as the EU debt crisis comes back to the front pages: Banco Santander (SAN) -3.5%, Deutsche Bank (DB) -2.3%, National Bank of Greece (NBG) -5.2% premarket. Commerzbank (CRZBY.PK) -5.3% in Frankfurt, Societe Generale (SCGLY.PK) -2.9% in Paris. |Wednesday, Jul 32013, 8:03 AM| Comment!
Tuesday, May 72013, 6:55 AMSociété Générale (SCGLF.PK): Net profit falls 50% Y/Y to €364M, beating by €47M. Net income in corporate and investment banking rises 41% to €494M beating estimates. Revenue takes a €1B hit on accounting change related to the revaluation of debt. Tier 1 capital is 8.7%. |Tuesday, May 72013, 6:55 AM| 2 Comments