Société Générale chairman announces shock resignation

| April 29, 2009 | 0 Comments

Daniel Bouton, Société Générale’s chairman, has announced he will step down from the bank citing the “personal attacks” against him for his resignation.

Mr Bouton, who is to stand down on 6 May, said the repeated attacks risk harming the bank and will depart to “protect the bank“.

Mr Bouton has been criticised since the Jérôme Kerviel scandal early last year after the rouge trader caused a loss of €4.9 billion (£4.4 billion) against the bank in authorised trades. At the time, Mr Bouton offered to stand down but it was rejected by the board. Instead he relinquished the chief executive role.

French President, Nicolas Sarkozy, has been vocal in his opinion of Mr Bouton and criticised him over the Kerviel scandal and executive bonuses.

As a result of the rogue trader, the bank needed a €1.7 billion loan from the Government and bosses of the bank forfeited their annual bonuses as a result of public outrage.

Mr Bouton admitted to making mistakes and commenting on his resignation said: “The repeated attacks against me personally in France for the past 15 months affect me, but most of all, they risk harming the bank and its 163,000 employees.”

32-year old Jérôme Kerviel has been charged with breach of trust, fabricating documents and illegally accessing computers but has yet to go on trial. Police investigations are ongoing.

Société Générale is France’s second largest bank and the rogue trader scandal was the biggest fraud investigation in banking history.

Tags: , Société Générale

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