French multinational banking and financial services company
Societe Generale S.A.
(
French:
[s?sjete
?ene?al]
), colloquially known in English speaking countries as
SocGen
(
French:
[s?k
??n]
),
[3]
is a French-based multinational
financial services
company founded in 1864, registered in downtown
Paris
and headquartered nearby in
La Defense
.
Societe Generale is France's third largest bank by total assets after
BNP Paribas
and
Credit Agricole
.
[4]
It is also the sixth largest bank in Europe and the world's eighteenth.
[4]
It is considered to be a
systemically important bank
by the
Financial Stability Board
. It has been designated as a Significant Institution since the entry into force of
European Banking Supervision
in late 2014, and as a consequence is directly supervised by the
European Central Bank
.
[5]
[6]
From 1966 to 2003 it was known as one of the
Trois Vieilles
("Old Three") major French commercial banks, along with
Banque Nationale de Paris
(from 2000
BNP Paribas
) and
Credit Lyonnais
.
History
[
edit
]
19th century
[
edit
]
The bank was founded by a group of
industrialists
and financiers during the
Second Empire
on 4 May 1864.
[8]
Its full name was
Societe Generale pour favoriser le developpement du commerce et de l'industrie en France
("General Company to Support the Development of Commerce and Industry in France"). The bank's first chairman was the prominent industrialist
Eugene Schneider
, followed by
Edward Charles Blount
. By 1870, the bank had 47 branches throughout France, including 15 in Paris. It set up a permanent office in London in 1871.
[8]
At the beginning, the bank used its own resources almost entirely for both financial and banking operations. In 1871, Societe Generale moved into the public French issues market with a national debenture loan launched to cover the war indemnity stipulated in the
Treaty of Frankfurt
.
[8]
The bank was financially involved with some of the businesses created by
Paulin Talabot
, the railway and canal engineer. Talabot came to have an influential role in the bank.
[9]
In 1886, Societe Generale was part of the bank consortium (along with the Franco-Egyptian Bank and the
Credit Industriel et Commercial
) that financed the construction of the
Eiffel Tower
.
[10]
From 1871 to 1893, France went through a period of economic gloom marked by the failure of several banking establishments. The company continued to grow at a more moderate pace. In 1889, there were 148 banking outlets, demonstrating the group's capacity to withstand unfavourable economic conditions.
[8]
Starting in 1894, the bank set up the structures characterising a large, modern credit institution. As well as collecting company and private deposits, its branches started to provide short-term operating credits for industrialists and traders. It also moved into placing shares with the general public, issuing private debenture loans in France and also in Russia. Acquisition of equity stakes became a more secondary activity. The company's excellent financial health allowed it to expand its shareholding structure. In 1895, Societe Generale had 14,000 shareholders.
In 1898, Societe Generale entered the Belgian market. Because the
Societe Generale de Belgique
predated its French namesake and had a dominant position in the national market, Societe Generale agreed to create a bank with a different name, the
Societe Francaise de Banque et de Depots
headquartered in Paris but entirely dedicated to operations in Belgium. The bank had its Brussels office from 1898 in the prestigious
Hotel de Ligne
[
fr
]
on
Rue Royale
,
[11]
and also maintained a branch in
Antwerp
,
[12]
at No.72-76 of
Meir
.
[13]
20th century
[
edit
]
By 1913, Societe Generale had 122,000 shareholders. The war years were difficult and had serious consequences with the loss of Russian business. However, during the 1920s Societe Generale became France's leading bank: its network had grown sharply since the 1890s, with a huge number of branches and seasonal offices allowing in-depth penetration of the provincial market (260 seasonal offices in 1910 and 864 in 1930).
The number of sales outlets rose from 1,005 in 1913 to 1,457 in 1933 (including those operated by
Sogenal
[
fr
]
).
Thanks also to the dynamism of supervisory and management staff at head office and in the branch offices it moved ahead of
Credit Lyonnais
(in terms of deposits collected and loans distributed) between 1921 and 1928. To satisfy the requirements of investing companies, Societe Generale created a subsidiary,
Calif
, specialised in medium-term credit in 1928.
On an international level, the bank held an active participation in the Russo-Asian Bank, one of the leading bank of the Russian empire.
[14]
Societe Generale first settled in Russia through the
Severnyi bank
in 1901, before merging with the Russo-Asian bank in 1910, which held a majority stake in the
Chinese Eastern Railway
.
[15]
It also invested in Russian industry including such companies as the
Rutchenko Coal Company
and the
Makeevka Steel Company
. Thanks to the connections of Talabot they were also involved in the
Krivoi-Rog Iron Company
[9]
The 1930s were another difficult period. Given the decline in international and French business, the bank was forced to nationalise its network by closing down local branches. On the eve of
World War II
, the number of sales outlets was not much greater than in 1922. However, Societe Generale was active in placing numerous public loans launched during this period by the State or the colonies. The war and the German Occupation interrupted its advance, but the bank moved into Africa and the United States.
Societe Generale was nationalised in 1945. It now had a single shareholder: the State. The period from 1945 to 1958 was characterised in France by rapid economic recovery but also a greater disequilibrium in the balance of payments, calling for continued exchange controls and virtually permanent credit control measures. It was not until 1959 that the economy really recovered, but credit controls were reinforced due to persistent inflationary pressures. Sharp growth in production and foreign trade opened up new areas of business for the banks.
The industry underwent some quite radical changes, one of the most striking of which was much greater specialisation of credit. The range of banking services on offer expanded uninterruptedly.
Thanks to its presence in
New York City
, Societe Generale was able to take advantage of the flow of business generated by the
Marshall Plan
.
Societe Generale continued to expand in France and beyond. It moved into Italy and Mexico and altered the status of its establishments in Africa after decolonisation, in accordance with the laws passed by these newly independent countries.
From the mid-1960s, Societe Generale gave new impetus to its French network, with an acceleration in growth after 1966 following elimination of prior authorisation for opening branch offices. International expansion was just as vigorous. It was no longer limited, as before, to the main financial centres (London, New York), neighbouring countries (Belgium, Spain) and the former colonies, with the primary aim of facilitating the business of French firms, but was also aimed at guaranteeing the bank's presence where new markets were developing, either to export the technical expertise it had acquired in certain fields, or to keep up its contact with the multi-nationals.
[16]
1966 and 1967 represented a fundamental turning point in banking regulations, the main development being attenuation of the distinction between deposit and investment banking, and creation of the home mortgage market. Societe Generale took advantage of this and acquired leading positions in some new financing techniques designed primarily for companies, such as
finance leasing
, setting up specialised credit subsidiaries for this purpose.
The 1970s were characterised by two major developments: expansion of the international network and across-the-board introduction of
IT
facilities to cope with extension of the customer base and the development of deposit money. In 1971, the appearance of automatic cash machines crowned the success and development of the credit card. In 1973, Societe Generale opened its representative office in the
Soviet Union
.
[16]
In 1975, Societe Generale introduced Agrifan, a food-products trading company to connect French suppliers with foreign food buyers. The following year during the
Bastille Day
holiday, a meticulously planned robbery was carried out
[17]
against Societe Generale's most heavily fortified vault in France by ex-paratrooper and wedding photographer
Albert Spaggiari
.
[18]
The robbery which involved secretly tunneling underground and compromising the walls of the bank vault netted Spaggiari over 12 million
[
clarification needed
]
in cash, jewellery, and bullion.
[16]
From the beginning of the 1980s, against a backdrop of deregulation and technological change, internationalisation of the markets and the emergence of new financial instruments, Societe Generale set itself two commercial objectives. It focused increasingly on private customers via its network of branches and by acquiring specialised subsidiaries. It pursued and expanded its activities in the capital markets in France, and then, on a selective basis, in the different international financial centres.
On 29 July 1987 Societe Generale was privatised. It had been chosen from among the three leading French commercial banks nationalised in 1945 for its excellent risk-coverage, equity and productivity ratios. George Soros was a share-holder in 1988.
In 1986, Societe Generale created Fimat International Banque S.A., a global brokerage,
[19]
offering a range of clearing and execution services on listed or OTC derivatives and cash products.
[20]
In 2005, Fimat completed the acquisition of Cube Financial. In January 2008, it merged with
Calyon Financial
to form
Newedge
; in 2014, SG purchased Credit Agricole's stake.
[21]
In subsequent years, the Societe Generale Group has focused on developing its activities around three core businesses through a combination of organic growth and acquisitions.
In the early 1990s, the Senegalese subsidiary of Societe Generale teamed up with the Swiss processed-foods manufacturer
Nestle
to illegally dispossess the real estate assets of the Industrial Company of Dairy Products (SIPL), thus leading the dairy company to bankruptcy.
[22]
Retail Banking was strengthened in 1997 through the acquisition of
Credit du Nord
, highlighting the Group's determination to capitalise on the restructuring of the French banking system. At the same time, Societe Generale looked to secure the long-term loyalty of its customers (launch of "one account number for life" and introduction of Jazz, a package of service offers). In 1999 it entered into a merger agreement with rival bank
Paribas
, but this was scuppered by a competitor, the
Banque Nationale de Paris
(BNP).
In 1998 Societe Generale paid $540 million in cash to acquire Cowen & Company, a New York investment bank that specialized in the health care, technology and communications industries.
[23]
Cowen was taken over by the Societe Generale Securities Corporation, the French bank's New York investment bank, and renamed the SG Cowen Securities Corporation. Joseph M. Cohen, Cowen's chief executive became its chairman, and Curtis R. Welling, an investment banker from Societe Generale's New York office became president and chief executive.
[23]
In 1998, Societe Generale set up Retail Banking outside France as a separate division, underscoring the Group's resolve to make this business one of its strategic development axes. This activity was also strengthened in 1999 through the acquisitions made in Romania (BRD ? Groupe Societe Generale),
Bulgaria
(
Societe Generale Expresbank
) and
Madagascar
.
21st century
[
edit
]
In the early years of the 21st century, Societe Generale's external growth strategy has been manifested through acquisitions in
Central Europe
(
Komer?ni Banka
in the
Czech Republic
and
SKB Banka
[
sl
]
in
Slovenia
) in 2001. Investment banking at Societe Generale in Russia was run by Jacques Der Megreditchian until 2000
[24]
At that time, Societe Generale became officially concerned with
money laundering
scandal and
underground economy
.
[25]
In 2001, Societe Generale acquired a controlling interest in the TCW Group. The
TCW Group
, which was founded in 1971, was originally known as
Trust Company of the West
and is the parent of
TCW/Crescent Mezzanine
one of the leading
mezzanine capital
firms in the US.
[26]
[27]
The TCW Group operated as a subsidiary of Societe Generale Asset Management until it was sold to
Carlyle Group
.
Africa is also a major area of interest for the bank, with the 2002 purchase of Eqdom in
Morocco
(the market leader in consumer lending) and
Union Internationale de Banques
[
fr
]
in
Tunisia
. In addition, 51 percent of
SSB Bank
in
Ghana
in 2003 and 50 percent of
Geniki Bank
in Greece in 2004 were acquired . In terms of specialized financial services, a department created in
mid-2001
, the purchase of two
Deutsche Bank
subsidiaries,
ALD Automotive
for multi-brand auto leasing and financing and
GEFA
for corporate sales financing enabled Societe Generale to increase its European presence in these sectors. In 2002, it continued to pursue its external growth strategy by purchasing
Hertz
Lease, a European subsidiary specializing in long-term leasing and fleet management for
Ford Motor Company
vehicles.
With a track record as leader in France for financial savings products (mutual funds, investment funds, company savings plans), the Group has developed its
Asset Management
and
Private Banking
activities: in 1999, its subsidiary,
Societe Generale Asset Management
, pursued the strategy of developing both its mutual fund management business in France and its activities aimed at major institutional investors at an international level. With the launch of
Societe Generale AM UK
in
London
and the acquisition of
Yamaichi
in Japan, Societe Generale Asset Management has taken a decisive step in establishing its international presence and is now able to offer its customers truly global fund management capabilities. Societe Generale also has a worldwide presence in private banking activities. After pursuing a deliberate policy of acquisitions in 1998,
Societe Generale Private Banking
consolidated and developed its franchise in 1999 against a backdrop of tougher competition.
During the 1st quarter 2004, the third branch of activity of the Societe Generale Group, GIMS Global Investment Management and Services was created. In February 2004, Societe Generale set up a new division named SG GSSI, Global Securities Services for Investors, which provides investor services on securities and derivatives, attached to the GIMS which regroups SG Asset Management, SG Private Banking and SG Global Securities Services for Investors. GIMS employed 7,600 people.
[
when?
]
In 2005, the Societe Generale acquired DeltaCredit, the largest mortgage bank in Russia, from
The U.S. Russia Investment Fund
for $100 million.
[28]
The Societe Generale developed its Corporate and Investment Banking businesses under the SG CIB brand name, introduced in 1998, which as of 2014 is subsumed by SG SS. Bolstered by a sound client base and a recognised capacity for innovation borne out by the league tables
[29]
[
citation needed
]
, Societe Generale was looking to develop its M&A, advisory and IPO activities through the acquisition of specialised firms (
SG Hambros
in the United Kingdom, Barr Devlin in the United States).
Following two years of crisis resulting from the revelation of the Kerviel fraud and then from the eruption of the
global financial crisis
, the bank appeared to have put things behind it in 2010.
In business terms, Societe Generale appeared intent on moving on and implementing an in-depth transformation in 2010. On 15 June, the Bank presented its Ambition SG 2015 programme to investors, the aim of this programme being to "deliver growth with lower risk" by 2015, using the lessons learned from the crisis.
[
citation needed
]
In 2010, the company saw an upturn in its financial results. Over the first half, the Group recorded net income of €2.15 billion.
These good figures were presented shortly after the publication of the results of the stress tests of 91 European banks, results that confirmed the financial solidity of the main four French banks, including Societe Generale.
During the summer of 2011, the financial markets, fearing the collapse of the
eurozone
associated with the
European sovereign debt crisis
, were severely shaken. European and French bank shares recorded substantial falls. It was within this context that Britain's
Mail on Sunday
published, on Sunday 7 August, an article in which it announced Societe Generale's imminent bankruptcy. The newspaper quickly published a retraction and its apologies but, despite that, the rumour gathered pace, notably on social networks, resulting in a spectacular fall in Societe Generale's share price and in bearish speculation. Societe Generale successfully filed a suit in the UK against
Associated Newspapers
(the
Mail on Sunday'
s parent company) for "substantial damage to its reputation and prejudice to its trade".
[30]
Bearish pressure, influenced by speculation but also by investor suspicion, continued to affect Societe Generale's share price through to the end of 2011. Over the year, the share lost 57.22 percent of its value, the third-worst CAC 40 performance of 2011 (after Veolia and Peugeot).
[
citation needed
]
In August 2020, it was reported that Societe Generale experienced a €1.26 billion loss during the second fiscal quarter of 2020.
[31]
It was the bank's weakest quarterly performance since 2008's Kerviel Fraud. As a result of this, Severin Cabannes, the bank's global banking and investor solutions business head, is set to retire in 2021 and leave his place by the end of this year. Additionally, Philippe Heim, who serves as the head of international retail banking, financial services, and insurance, will also vacate his position as deputy chief executive immediately.
[32]
In December 2013, the European Commission fined the bank close to 446 million Euro for its role in the LIBOR scandal regarding interest rate derivatives.
[33]
[34]
In December 2021,
Amundi
finalized its acquisition of Lyxor Asset Management from Societe Generale.
[35]
Lyxor was an
investment company
based in France, and a wholly owned subsidiary of Societe Generale. It offered exchanged-traded
index funds
and other
ETFs
, exchanged-traded notes (
ETN
),
[36]
and several other products to private and corporate investors.
In April 2022, Societe Generale became the first major financial group to leave Russian market because of
International sanctions during the Russo-Ukrainian War
.
[37]
In May 2022, Societe Generale announced the closing of the sale of
Rosbank
and the Group's Russian insurance subsidiaries to Interros Capital. This transaction results for Societe Generale in a net loss of around 3.2 billion euros and has an impact of about -7 basis points on its capital ratio.
[38]
Operations
[
edit
]
Societe Generale is a universal bank. The Group consists of three main pillars backed by two business lines. Societe Generale is often nicknamed
SocGen
(pronounced "sock jenn") in the international financial world.
Commercial activity
[
edit
]
Societe Generale's three pillars, at the heart of the development of its relationship banking model, are:
- Retail Banking in France (Societe Generale, Credit du Nord and
Boursorama
)
- International Banking and Financial Services (IBFS)
- Corporate and Investment Banking (SG CIB), with investment banking and fixed income, structured financing, debt and forex activities on the one side, and equity and consulting activities on the other.
The development of these three pillars is backed by two other core activities, namely:
- Specialised Financial Services & Insurance
- Private Banking, Global Investment Management & Services
Corporate affairs
[
edit
]
Societe Generale's head office is in the
Tours Societe Generale
in the business district of
La Defense
in the city of
Nanterre
, west of Paris. The company moved there in June 1995 from the former head office along
Boulevard Haussmann
in the
9th arrondissement
of
Paris
. The head office has 7,000 employees.
[39]
The former head office remains as the company's
registered office
.
[40]
In 2015,
Standard Ethics Aei
has given a rating to Societe Generale in order to include it in its Standard Ethics French Index.
[41]
The Group has a long-term active and generally very discreet support policy. Its sponsorship of rugby is well-known, but its support in other fields such as music, contemporary art, disabled sport (as an official partner of the Federation Francaise Handisport, the French Federation for Disabled Sports) and corporate citizenship, professional integration and disadvantaged children, is less known.
Leadership
[
edit
]
- Eugene Schneider
, chairman 1864?1869
- Guillaume Deniere
[
fr
]
, chairman 1869-1886
- Edward-Charles Blount
, chairman 1886?1901
- Jean Hely d'Oissel
[
fr
]
, chairman 1902-1915
- Andre Homberg
[
fr
]
, chairman 1922-1932
- Joseph Simon, chairman 1932?1940
- Henri Ardant
[
fr
]
, CEO 1934-1944 and chairman 1941-1944
- Pierre de Mouy, chairman 1944?1958
- Maurice Lorain, CEO 1944-1958 and chairman 1958?1967
- Jacques Ferronniere
[
fr
]
, CEO 1958-1967 and chairman 1967-1972
- Maurice Laure
, CEO 1967-1982 and chairman 1973?1982
- Jacques Mayoux
[
fr
]
, chairman & CEO 1982-1986
- Marc Vienot
, chairman & CEO 1986?1997
- Daniel Bouton
[
fr
]
, chairman 1997-2009 and CEO 1997-2008
- Frederic Oudea
, chairman 2009-2015 and CEO 2008-2023
- Lorenzo Bini Smaghi
, chairman since 2015
- Slawomir Krupa
, CEO 2023-
Controversies
[
edit
]
Senegal
[
edit
]
In the early 1990s, the Senegalese subsidiary of Societe Generale teamed up with the Swiss processed-foods manufacturer
Nestle
to illegally dispossess the real estate assets of the Industrial Company of Dairy Products (SIPL), thus leading the dairy company to bankruptcy.
[42]
January 2008 trading loss and Kerviel trial
[
edit
]
On 24 January 2008 the bank announced that a single futures trader at the bank had fraudulently lost the bank €4.9 billion (an equivalent of US$7.2 billion), the largest such loss in history.
[43]
[44]
The company did not name the trader, but other sources identified him as
Jerome Kerviel
, a relatively junior
futures
trader
who allegedly orchestrated a series of bogus transactions that spiraled out of control amid turbulent markets in 2007 and early 2008.
[45]
Partly due to the loss, that same day two
credit rating agencies
reduced the bank's long term debt ratings: from AA to AA? by Fitch; and from Aa1/B to Aa2/B? by Moody's (B and B? indicate the bank's financial strength ratings).
[46]
[47]
Executives said the trader acted alone and that he may not have benefited directly from the fraudulent deals. The bank announced it will be immediately seeking €5.5 billion in financing. On the eve and afternoon of 25 January 2008, Police raided the Paris headquarters of Societe Generale and Kerviel's apartment in the western suburb of
Neuilly
, to seize his computer files.
[48]
French presidential aide
Raymond Soubie
stated that Kerviel dealt with $73.3 billion (more than the bank's
market capitalization
of $52.6 billion). Three union officials of Societe Generale employees said Kerviel had family problems.
[49]
On 26 January 2008 the Paris prosecutors' office stated that Jerome Kerviel, 31, in Paris, "is not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Societe Generale."
[50]
Spiegel Online
stated that Kerviel may have lost 2.8 billion dollars on 140,000 contracts earlier negotiated due to DAX falling 600 points.
[51]
Societe Generale SA says it had a net loss in the fourth quarter of 2007 after the French bank took a €4.9 billion ($7.18 billion) hit closing the unauthorized trading positions of
Jerome Kerviel
.
[52]
The trial of Jerome Kerviel began on 8 June 2010 at the Paris Palais de Justice, and lasted until 25 June. Societe Generale filed the civil suit. The former Societe Generale trader was represented by Olivier Metzner, and the Bank was represented by Jean Veil, Jean Reinhart and Francois Martineau.
The trial aroused much media interest, with a record number of requests for accreditation from journalists.
[
citation needed
]
Following more than two weeks of highly technical debate with much focus on Jerome Kerviel's character, the State Prosecutor called for the former trader to be given a five-year prison sentence, two of them suspended, whilst Kerviel's lawyer called for his client to be acquitted.
The ruling was announced on 5 October 2010 at 11 am. Jerome Kerviel was found guilty of the three charges filed against him: breach of trust, fraudulent inputting of data into an IT system and forgery and use of forged documents. He was found to be solely responsible for the record loss suffered by Societe Generale in early 2008, and was sentenced to five years in prison, with two of those years suspended, and ordered to pay damages of €4.9 billion to the Bank.
[53]
Jerome Kerviel immediately launched an appeal on the basis of an "unreasonable decision", according to his lawyer Olivier Metzner.
[54]
Kerviel's sentence has therefore been suspended until the appeal, which is due to take place between 4 and 28 June 2012, and he is presumed innocent until that time.
[53]
The huge amount of damages Kerviel was ordered to pay gave rise to much emotion amongst the general public and online. The sentencing of one man to pay such a large sum of money was met with incomprehension and anger amongst Internet users. The Bank announced that the sum was "symbolic" and it had no expectation that the sum would be paid by Jerome Kerviel.
[55]
March 2008: Missing consignment of gold by Golda?
[
edit
]
On 21 March 2008 Societe Generale filed suit in Istanbul Commercial Court against
Golda?
, a Turkish Jewelry firm, claiming the company had not paid for 15 tonnes(15,000 kg) of gold it had received through a consignment agreement.
[56]
[57]
Golda? stated that the consignment agreement was only for 3,250 kg of gold with a value of US$94 million.
[58]
In June 2008, the court found Golda? not guilty.
March 2009: Potential loss of $11 billion averted due to US government bailout of AIG
[
edit
]
On 15 March 2009
AIG
disclosed that, among its counterparties, Societe Generale was to date the largest recipient of both
credit default swap
(CDS) collateral postings ($4.1 bn) and CDS payments ($6.9 bn), payments made possible in part by
the 2008 U.S. government bailout of AIG
.
[59]
Clearstream
[
edit
]
French reporter
Denis Robert
and former No. 3 of
Cedel
fr:Ernest Backes
,a
whistleblower
of
Clearstream
have accused Societe Generale of having non-published accounts in Clearstream, which was at the centre of a financial scandal in 2009.
[
citation needed
]
Check processing fees
[
edit
]
In 2010 the French government's
Autorite de la concurrence
(the department in charge of regulating competition) fined eleven banks, including Societe Generale, the sum of 384,900,000 Euros for
colluding to charge unjustified fees on check processing
, especially for extra fees charged during the transition from paper check transfer to "Exchanges Check-Image" electronic transfer.
[60]
[61]
LIBOR
[
edit
]
In December 2013, the European Commission fined the bank close to €446 million for its role in the LIBOR scandal regarding interest rate derivatives.
US mortgage-backed securities
[
edit
]
In February 2014, Societe Generale agreed to pay $122 million to the
Fannie Mae
and the
Freddie Mac
for misleading them in the purchase of mortgage-backed securities.
[62]
In January 2017, Societe Generale agreed to pay $50 million to settle a claim by the American government of fraudulent concealment of residential mortgage-backed securities quality.
[63]
Libyan Investment Authority
[
edit
]
In March 2014, the
Libyan Investment Authority
has filed a $1.5 billion lawsuit in London's High Court against Societe Generale. The claims against the bank involve derivative transactions that took place from 2007 to 2009, and Societe Generale is accused of funneling at least $58 million in bribes to Gaddafi's son
Saif al-Islam Gaddafi
. The French bank denied those allegations
[64]
[65]
US municipal bond derivatives
[
edit
]
In February 2016, Societe Generale paid $26.8 million to settle charges in a case of municipal bond derivatives where the French bank is accused of anticompetitive and fraudulent conduct.
[66]
Panama Papers
[
edit
]
In March 2016, Societe Generale was mentioned in the
Panama Papers
: It was among the 10 banks that asked for the most offshore shell companies for the account of its clients via the Mossack Fonseca firm.
[67]
Its headquarters were searched by the French tax police on 5 April 2016, as the bank was linked with the creation of 979 offshore companies.
[68]
In 2012, CEO Frederic Oudea said that Societe Generale withdrew from all countries belonging to the grey list of tax havens compiled by the
OECD
, including Panama.
[69]
Despite this previous statement, Mr Oudea defended that those offshore companies were not meant to be used as tax evasion vehicles.
[70]
U.S. sanctions
[
edit
]
In November 2018, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced a $53,966,916.05 settlement with Societe Generale S.A. to settle potential civil liability for apparent violations of U.S. sanctions. The settlement resolves OFAC's investigation into Societe Generale S.A.'s processing of transactions to or through the United States or U.S. financial institutions in a manner that removed, omitted, obscured, or otherwise failed to include references to OFAC-sanctioned parties in the information sent to U.S. financial institutions that were involved in the transactions.
[71]
See also
[
edit
]
References
[
edit
]
- ^
a
b
c
d
e
"Annual Financial Report"
(PDF)
.
Societe Generale
. Retrieved
23 May
2023
.
- ^
"Annual Report 2015"
(PDF)
.
- ^
Kohene, David (5 November 2016).
"SocGen to sell Polish arm to Millennium"
.
Financial Times
. Retrieved
1 November
2018
.
- ^
a
b
"The world's 100 largest banks, 2021"
. S&P Global Market Intelligence.
- ^
"The list of significant supervised entities and the list of less significant institutions"
(PDF)
.
European Central Bank
. 4 September 2014.
- ^
"List of supervised entities"
(PDF)
.
European Central Bank
. 1 January 2023.
- ^
Thierry Kozak (1988),
"L'agence centrale de la Societe Generale a Paris (1908-1912)"
,
Histoire de l'art
,
1?2
: 51?60
- ^
a
b
c
d
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"OFAC Recent Actions"
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.
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