DANIEL BOUTON is to resign as chairman of Société Générale, one of France’s biggest banks, next week, ending the controversy over his decision to remain following last year’s rogue trading affair that cost the bank €4.9 billion ($6.5 billion).
In a statement yesterday, Mr Bouton, who headed the bank for more than a decade, said he would go after next week’s annual meeting because of repeated personal attacks that had harmed SocGen’s reputation.
He admitted to having “made mistakes” but said the institution had become “one of the finest banks in the eurozone”.
Mr Bouton has come under pressure for his leadership of the French bank. Last month SocGen caused a political and public storm after awarding four directors, including Mr Bouton, stock options. It was forced into a humiliating climbdown after French President Nicolas Sarkozy called the decision “a scandal”.
This week SocGen issued a detailed denial of a press report alleging it was covering up big losses in the asset management business. SocGen, which made €2 billion of net profit in 2008, is one of the country’s six biggest banks receiving state support.
It is to receive a second tranche of aid before the summer. Mr Bouton split his role as chairman and chief executive under pressure last May following January’s trading scandal in which Jérôme Kerviel, a young market maker, placed €50 billion of allegedly unauthorised bets on futures markets.
The legal case continues against Mr Kerviel, who said in a recent interview that his superiors had nicknamed him “the cash machine”. Frédéric Oudéa, former finance director, became chief executive.
Mr Bouton said: “The repeated attacks against me personally in France over the past 15 months affected me but, most of all, they risk harming the bank. It is better for me to withdraw, proud of having led a wonderful company.” – (Copyright The Financial Times Ltd 2009)
