Societe Generale discovers 4.9 billion euro fraud

Societe Generale, the owner of BRD Groupe Societe Generale in Romania, discovered a 4.9 billion euro fraud (7.16 billion dollars) caused by one of the bank’s trader, Wall Street Journal informs. Besides this, Societe Generale announced 2.05 billion euro losses caused by the credit crisis on the American market. The second largest French bank, after BNP Paribas, also announced that the group will have a 600 – 800 million euro profit in 2007, despite the losses.

Societe Generale rejected on Thursday the resignation stabled by president Daniel Bouton. The bank intends to conduct a 5.5 billion euro capital increase Banca during the following weeks, in order to compensate the losses.

Credit Agricole, one of the competitors, suffered a similar incident in 2007, recording 230 million euro losses.

Reuters informs that the trader will be sacked and his managers will leave the company.

In a press release, BRD Groupe Societe Generale Romania informs that its activity in not affected by the incident.