SocGen on Thursday sought an emergency 5.5 billion capital injection to salvage its balance sheet as a result of the trading scam that has been billed the largest in history. Analysts said that SocGen's unwinding of the massive rogue positions on Monday might have contributed to the violent slump in share prices. The bank said that its full-year net profit would drop between 600 million and 800 million from 5.22 billion from the year previous because of the fraud as well as losses resulting from volatility in U.S. subprime mortgages and monoline insurers. The bank announced further write-downs of 2.05 billion relating to the global credit crunch. Fitch Ratings has as a result cut SocGen's rating one notch to 'AA-'. The fraud raised questions about the effectiveness of the bank's systems and created a reputation of risk for the bank, the rating agency said. The trading fraud involved 31-year old options trader Jerome Kervielwho who supposedly caused SocGen to lose 5 billion ($7.3 billion). The fraud is believed to be the biggest in history, according to published reports. The bank declined to confirm the trader's identity. The Paris prosecutor's office has opened a preliminary criminal investigation into the presumed case of fraud after a complaint by a shareholder. Kerviel had been with the bank for about six years and was a relatively junior employee trading on small positions.
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Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
10h ago -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24 -
Bluegreen Vacation originated the loans and Fitch expressed confidence in its record of good performance as servicer.
April 23 -
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
April 23 -
Lendbuzz sells the notes as it juggles mixed performance results from 2023. Originations and revenues saw huge jumps, but so did operating expenses.
April 23