Société Générale
Encyclopedia
- For other Société Générales see Société Générale (disambiguation)Société Générale (disambiguation)Société Générale can refer to:Banks, investment and financial services*Société Générale, a french bank*BRD – Groupe Société Générale, a romanian bank*Société Générale Srbija, a serbian bank*Société générale de financement, a Quebec based holding company...
Société Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann
Boulevard Haussmann
Boulevard Haussmann, running from the 8th to the 9th arrondissement,is one of the wide tree-lined boulevards created in Paris during the Second French Empire by Baron Haussmann, with enthusiastic support from Napoleon III....
in the 9th arrondissement of Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, while its head office is in the Tours Société Générale
Tours Société Générale
Société Générale Twin Towers are two office skyscrapers located in La Défense, a high-rise business district, and in Nanterre, France, west of Paris. Their exterior designs are exactly identical....
in the business district of La Défense
La Défense
La Défense is a major business district of the Paris aire urbaine. With a population of 20,000, it is centered in an orbital motorway straddling the Hauts-de-Seine département municipalities of Nanterre, Courbevoie and Puteaux...
in the city of Nanterre
Nanterre
Nanterre is a commune in the western suburbs of Paris, France. It is located west of the center of Paris.Nanterre is the capital of the Hauts-de-Seine department as well as the seat of the Arrondissement of Nanterre....
, west of Paris. The three main divisions are Retail Banking & Specialized Financial Services (particularly in France and Eastern Europe), Corporate and Investment Banking (Derivatives
Equity derivative
In finance, an equity derivative is a class of derivatives whose value is at least partly derived from one or more underlying equity securities. Options and futures are by far the most common equity derivatives, however there are many other types of equity derivatives that are actively...
, Structured Finance and Euro Capital Markets) and Global Investment Management & Services.
It is no. 2 French bank behind BNP Paribas and the no. 8 bank in the european zone ahead of Credit Suisse. Société Générale has been ranked as one of the world's most admired companies to work in.
Société Générale is one of the oldest bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s in France. The original name was Société Générale pour favoriser le développement du commerce et de l'industrie en France (General Company to Support the Development of Commerce and Industry in France). Société Générale is often nicknamed SocGen in the international financial world.
The long term debt of the group is currently ranked A+ by S&P, Aa3 by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
and A+ by Fitch
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
.
1864–1893
The bank was founded by a group of industrialists and financierFinancier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
s during the second empire, on May 4, 1864, to support the development of commerce and industry in France. The bank's first chairman was the prominent industrialist Eugène Schneider
Eugène Schneider
Joseph Eugène Schneider was a French industrialist who in 1836 co-founded the Schneider company with his brother Adolphe.-Biography:...
(1805–1875) followed by Edward Blount, a Scotsman
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
.
The company started to hire employees and establish offices. Coverage of France went ahead at a steady rate. By 1870, the bank had 15 branches in Paris and 32 in the rest of France. It set up a permanent office in London in 1871.
At the beginning, the bank used its own resources almost entirely for both financial and banking operations. In 1871, Société Générale moved into the public French issues market with a national debenture loan launched to cover the war indemnity stipulated in the Treaty of Frankfurt
Treaty of Frankfurt (1871)
The Treaty of Frankfurt was a peace treaty signed in Frankfurt on 10 May 1871, at the end of the Franco-Prussian War.- Summary :The treaty did the following:...
.
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.
1894–1930
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
.
Acquisition of equity stakes became a more secondary activity. The company's excellent financial health allowed it to expand its shareholding structure. In 1895, Société Générale had 14,000 shareholders; in 1913, they numbered 122,000.
The war years were difficult and had serious consequences with the loss of Russian business. However, during the 1920s Société Générale 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).
Thanks also to the dynamism of supervisory and management staff at head office and in the branch offices it moved ahead of Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
(in terms of deposits collected and loans distributed) between 1921 and 1928. To satisfy the requirements of investing companies, Société Générale created a subsidiary, Calif, specialised in medium-term credit in 1928.
1931–1945
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 IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the number of sales outlets was not much greater than in 1922. However, Société Générale 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
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
1945–1964
Société Générale 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
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Société Générale was able to take advantage of the flow of business generated by the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
.
Société Générale continued to expand in France and elsewhere. It moved into Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and altered the status of its establishments in Africa after decolonisation, in accordance with the laws passed by these newly independent countries.
1965–1990
Société Générale 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 (BelgiumBelgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
) 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.
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. Société Générale 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
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
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, Société Générale opened its representative office in the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. In 1975, Société Générale introduced Agrifan, a food-products trading company to connect French suppliers with foreign food buyers. The following year during the Bastille Day
Bastille Day
Bastille Day is the name given in English-speaking countries to the French National Day, which is celebrated on 14 July of each year. In France, it is formally called La Fête Nationale and commonly le quatorze juillet...
holiday, a meticulously planned robbery was carried out against Société Générale's most heavily fortified vault in France by ex-paratrooper and wedding photographer Albert Spaggiari
Albert Spaggiari
Albert Spaggiari , nicknamed Bert, was a French criminal chiefly known as the organizer of a break-in into a Société Générale bank in Nice, France in 1976.-Earlier life:...
. The robbery which involved secretly tunneling underground and compromising the walls of the bank vault netted Spaggiari over 12 million in cash, jewellery, and bullion.
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, Société Générale 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, Société Générale 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.
Since 1991
In recent years, the Société Générale Group has focused on developing its activities around three core businesses through a combination of organic growth and acquisitions.Retail Banking was strengthened in 1997 through the acquisition of Crédit du Nord
Crédit du Nord
Crédit du Nord is a French retail banking network.It consists of the followings banks:* Banque Courtois, Toulouse, Aquitaine * Banque Kolb, Alsace, Lorraine* Banque Laydernier, Savoy...
, highlighting the Group's determination to capitalise on the restructuring of the French banking system. At the same time, Société Générale has 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, Société Générale 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
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
(BRD - Groupe Société Générale), Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
(Société Générale Expressbank) and Madagascar
Madagascar
The Republic of Madagascar is an island country located in the Indian Ocean off the southeastern coast of Africa...
. This external growth strategy has been manifested through acquisitions in Central Europe
Central Europe
Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...
(Komerční Banka
Komercní banka
Komerční banka is one of the main banks in the Czech Republic. It serves about 1.5 million customers in more than 350 branches.The bank was founded in 1990 following separation of commercial activities from the former Státní banka československá . In 1992, the bank was partially privatized in...
in the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and SKB Banka in Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
) in 2001.
At that time, Société Générale became officially concerned with money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
scandal and underground economy
Underground economy
A black market or underground economy is a market in goods or services which operates outside the formal one supported by established state power. Typically the totality of such activity is referred to with the definite article as a complement to the official economies, by market for such goods and...
.
In 2001, Société Générale acquired a controlling interest in the TCW Group. The TCW Group
TCW Group
The TCW Group is an investment management company that offers various equity, fixed income, and alternative strategies to and individual investors. The group operates as a subsidiary of SG Gestion....
, which was founded in 1971, was originally known as Trust Company of the West and is the parent of TCW/Crescent Mezzanine
TCW/Crescent Mezzanine
Crescent Capital Group is a firm focused on below investment grade markets with primary strategies that include funds that invest in senior bank loans, high yield debt, mezzanine debt and distressed securities...
one of the leading mezzanine capital
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
firms in the US. Today, the TCW Group operates as a subsidiary of Societe Generale Asset Management.
Africa is also a major area of interest for the bank, with the 2002 purchase of Eqdom in Morocco
Morocco
Morocco , officially the Kingdom of Morocco , is a country located in North Africa. It has a population of more than 32 million and an area of 710,850 km², and also primarily administers the disputed region of the Western Sahara...
(the market leader in consumer lending) and Union International de Banque in Tunisia
Tunisia
Tunisia , officially the Tunisian RepublicThe long name of Tunisia in other languages used in the country is: , is the northernmost country in Africa. It is a Maghreb country and is bordered by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east. Its area...
. In addition, 51% of SSB Bank in Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
in 2003 and 50% of Geniki Bank
Geniki Bank
Geniki Bank is a Greek financier group that provides complete banking and financing services. It was founded in 1937.The bank is traded at the Athens Stock Exchange since 26 January 1963...
in Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
in 2004 were acquired . In terms of specialized financial services, a department created in mid-2001, the purchase of two Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
subsidiaries, ALD Automotive for multi-brand auto leasing and financing and GEFA for corporate sales financing enabled Société Générale to increase its European presence in these sectors. In 2002, it continued to pursue its external growth strategy by purchasing Hertz
Hertz
The hertz is the SI unit of frequency defined as the number of cycles per second of a periodic phenomenon. One of its most common uses is the description of the sine wave, particularly those used in radio and audio applications....
Lease, a European subsidiary specializing in long-term leasing and fleet management for Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
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
Private banking
Private banking is banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers...
activities: in 1999, its subsidiary, Société Générale 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 Société Générale AM UK in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and the acquisition of Yamaichi in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Société Générale 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. Société Générale also has a worldwide presence in private banking activities. After pursuing a deliberate policy of acquisitions in 1998, Société Générale 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 Société Générale Group, GIMS Global Investment Management and Services was created.
In February 2004, Société Générale set up a new division named SG GSSI, Global Securities Services for Investors, which provides full investor services on securities and listed derivatives covered by the group around the world.
SG GSSI is attached to the GIMS which regroups SG Asset Management, SG Private Banking and SG Global Securities Services for Investors. GIMS employs 7,600 people.
Société Générale is developing its Corporate and Investment Banking businesses under the SG CIB brand name, which was introduced by the Group in 1998. Bolstered by a sound client base and a recognised capacity for innovation borne out by the league tables (the Group is ranked among the global leaders in equity derivatives, convertible bonds, export finance, etc.), Société Générale is looking to develop its M&A, advisory and IPO activities through the acquisition of specialised firms (SG Hambros
SG Hambros
SG Hambros is a UK private bank, owned by Société Générale. Société Générale acquired Hambros Bank in 1998. SG Hambros provides private banking services including investment management, wealth planning and fiduciary services and on-line banking.SG Hambros is regulated by the Financial Services...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Barr Devlin in the United States).
French reporter Denis Robert
Denis Robert
Denis Robert is a French freelance journalist and a writer. Robert formerly worked for Libération newspaper for 12 years....
and former #3 of Cedel
Cedel
Cedel was a clearing company of securities. It was founded in 1971 and was owned by of 92 banks. Since July 2002 it is a division of Deutsche Börse, and known as Clearstream....
Ernest Backes, have accused Société Générale of having non-published accounts in Clearstream
Clearstream
Clearstream Banking S.A. is the clearing and settlement division of Deutsche Börse, based in Luxembourg and Frankfurt. Clearstream was created in January 2000 through the merger of Cedel International and Deutsche Börse Clearing...
, which is at the centre of a financial scandal. The bank denied those accusations.
Trading loss incident
On January 24, 2008, the bank announced that a single futures trader at the bank had fraudulently lost the bank €4.9billion (an equivalent of $7.2billionUS), the largest such loss in history. The company did not name the trader, but other sources identified him as Jérôme KervielJérôme Kerviel
Jérôme Kerviel is a French trader who has a pending appeal of his conviction in the January 2008 Société Générale trading loss incident for breach of trust, forgery and unauthorized use of the bank's computers, resulting in losses valued at €4.9 billion.Société Générale characterizes Kerviel...
, a relatively junior futures trader
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
who allegedly orchestrated a series of bogus transactions that spiraled out of control amid turbulent markets in 2007 and early 2008.
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).
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 euros in financing. On the eve and afternoon of January 25, 2008, Police raided the Paris headquarters of Société Générale and Kerviel's apartment in the western suburb of Neuilly
Neuilly-sur-Seine
Neuilly-sur-Seine is a commune in the western suburbs of Paris, France. It is located from the center of Paris.Although Neuilly is technically a suburb of Paris, it is immediately adjacent to the city and directly extends it. The area is composed of mostly wealthy, select residential...
, to seize his computer files. French presidential aide Raymond Soubie
Raymond Soubie
-Biography:Raymond Soubie is a graduate of Sciences Po Bordeaux and of the École Nationale d'Administration. In 1969, he worked as an advisor to Minister of Labour Joseph Fontanet. He then worked for Jacques Chirac and Raymond Barre. He also served as an advisor to Pierre Bérégovoy, Edouard...
stated that Kerviel dealt with $73.3 billion (more than the bank's market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of $52.6 billion). Three union officials of Société Générale employees said Kerviel had family problems. On January 26, 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 Société Générale." Spiegel-Online stated that Kerviel may have lost 2.8 billion dollars on 140,000 contracts earlier negotiated due to DAX falling 600 points.
February 2008
Société Générale 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 Jérôme KervielJérôme Kerviel
Jérôme Kerviel is a French trader who has a pending appeal of his conviction in the January 2008 Société Générale trading loss incident for breach of trust, forgery and unauthorized use of the bank's computers, resulting in losses valued at €4.9 billion.Société Générale characterizes Kerviel...
.
Missing consignment of gold by Goldaş
On March 21, 2008, Société Générale filed suit in Istanbul Commercial Court against GoldaşGoldaş
Goldaş or Goldaş Jewellery is a Turkish jewellery fabricator and retail sales company. Goldaş markets its product offerings under multiple brand names including Goldas, Assortie, SilverD’sign, WeddingD’sign, Danthel, Chip Gold, and Chip Silver.-History:...
, a Turkish Jewelry firm, claiming the company had not paid for 15 tonnes(15,000kg) of gold it had received through a consignment agreement. Goldaş stated that the consignment agreement was only for 3,250 kg of gold with a value of US$94 million. Société Générale also filed a concurrent suit in the United Kingdom preferring to settle the matter in a third country. On April 4, 2008, the Istanbul court issued a temporary injunction to freeze assets of Goldaş equal to the value of 10 tonnes of gold, or US$285 million. In June 2008, the court found Goldaş not guilty. Société Générale then escalated the case to the Istanbul Court for Serious Crimes. When this court affirmed the previous court's decision, Société Générale pursued an annulment of the decision with the Turkish Ministry of Justice. The ministry expedited the request to the Turkish Supreme Court of Appeals, which subsequently refused Société Générale's request on Feb. 20, 2009. On June 3, 2010, Goldaş
Goldaş
Goldaş or Goldaş Jewellery is a Turkish jewellery fabricator and retail sales company. Goldaş markets its product offerings under multiple brand names including Goldas, Assortie, SilverD’sign, WeddingD’sign, Danthel, Chip Gold, and Chip Silver.-History:...
filed a counter-suit against Société Générale for defamation of the Turkish company's reputation and requested punitive action against the bank.
Potential loss of $11 billion averted due to US government bailout of AIG
On March 15, 2009, AIGAmerican International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
disclosed that, among its counterparties, Société Générale was to date the largest recipient of both credit default swap
Credit default swap
A credit default swap is similar to a traditional insurance policy, in as much as it obliges the seller of the CDS to compensate the buyer in the event of loan default...
(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
Emergency Economic Stabilization Act of 2008
The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008 (Division A of , commonly referred to as a bailout of the U.S. financial system, is a law enacted in response to the subprime mortgage crisis...
.
Activity
Société Générale is the 3rd largest Corporate and Investment bank in the EurozoneEurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
by net banking income and the 6th largest French company by market capitalization. It employs 120,000 people, of which 75,000 in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, and maintains a presence in 80 countries. The bank is active in the finance, investment and asset management markets.
In France, Société Générale is active in retail banking with more than 2,700 branches (including its Crédit du Nord banking division).
SG CIB
Société Générale Corporate and Investment Banking, the Corporate and Investment Banking arm of the Société Générale Group, is the 3rd largest corporate and investment bank in the euro zone by net banking income. Société Générale Corporate and Investment Banking serves corporates, financial institutions and investors in over 45 countries across Europe, the Americas and Asia. It provides value-added integrated financial solutions and is a reference bank in its three specialist areas: Euro Capital Markets, Derivatives and Structured Finance.
Leadership
Starting in 1997, the Chairman of Société Générale was Daniel Bouton, a former cabinet director under Alain JuppéAlain Juppé
Alain Marie Juppé is a French politician currently serving as the Minister of Foreign Affairs. He also served as Prime Minister of France from 1995 to 1997 under President Jacques Chirac and the Minister of Defence and Veterans Affairs from 2010 to 2011...
.
In May 2008, the Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
became Frederic Oudea
Frederic Oudea
Frederic Oudéa is Chief Executive Officer to Société Générale.-Career:After his education at École nationale d'administration and Ecole Polytechnique in France, Oudea worked in the economic sector of the French civil service from 1987 until 1995...
.
On April 2009, Daniel Bouton left Société Générale.
Affiliates
Affiliates of Société Générale include:Africa - Société Générale Algerie - in Algeria
Algeria
Algeria , officially the People's Democratic Republic of Algeria , also formally referred to as the Democratic and Popular Republic of Algeria, is a country in the Maghreb region of Northwest Africa with Algiers as its capital.In terms of land area, it is the largest country in Africa and the Arab...
- Société Générale de Banques au Benin - in Benin
Benin
Benin , officially the Republic of Benin, is a country in West Africa. It borders Togo to the west, Nigeria to the east and Burkina Faso and Niger to the north. Its small southern coastline on the Bight of Benin is where a majority of the population is located...
- Société Générale de Banques au B8rkina - in Burkina Faso
Burkina Faso
Burkina Faso – also known by its short-form name Burkina – is a landlocked country in west Africa. It is surrounded by six countries: Mali to the north, Niger to the east, Benin to the southeast, Togo and Ghana to the south, and Côte d'Ivoire to the southwest.Its size is with an estimated...
- Société Générale de Banques au Cameroun - in Cameroon
Cameroon
Cameroon, officially the Republic of Cameroon , is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon's coastline lies on the...
- Société Générale de Banques en Côte d'Ivoire in Ivory Coast - National Société Générale Bank - in Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
- Société Générale-Social Security Bank
SG-SSB
SG-SSB is a bank that is based in Ghana. The name "SG-SSB" stands for "Société Générale - Social Security Bank"; the bank is part of the Société Générale banking group. The bank is based in Accra and its stock is listed on the Ghana Stock Exchange. It is a component of the GSE All-Share Index...
- in Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
- Société Générale de Banques en Guineé - in Guinea
Guinea
Guinea , officially the Republic of Guinea , is a country in West Africa. Formerly known as French Guinea , it is today sometimes called Guinea-Conakry to distinguish it from its neighbour Guinea-Bissau. Guinea is divided into eight administrative regions and subdivided into thirty-three prefectures...
- BFV-Société Générale - in Madagascar
Madagascar
The Republic of Madagascar is an island country located in the Indian Ocean off the southeastern coast of Africa...
- Société Générale Mauritanie - in Mauritania
Mauritania
Mauritania is a country in the Maghreb and West Africa. It is bordered by the Atlantic Ocean in the west, by Western Sahara in the north, by Algeria in the northeast, by Mali in the east and southeast, and by Senegal in the southwest...
- Société Générale Marocaine des Banques - in Morocco
Morocco
Morocco , officially the Kingdom of Morocco , is a country located in North Africa. It has a population of more than 32 million and an area of 710,850 km², and also primarily administers the disputed region of the Western Sahara...
- Société Générale Bank of Nigeria - in Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
- Société Générale de Banques au Sénégal - in Senegal
Senegal
Senegal , officially the Republic of Senegal , is a country in western Africa. It owes its name to the Sénégal River that borders it to the east and north...
- Société Générale Bank South Africa - in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
- Union Internationale de Banques - in Tunisia
Tunisia
Tunisia , officially the Tunisian RepublicThe long name of Tunisia in other languages used in the country is: , is the northernmost country in Africa. It is a Maghreb country and is bordered by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east. Its area...
Asia - Société Générale Global Solution Center
SG-GSC
Société Générale Global Solution Center is the Indian subsidiary of Société Générale group and is based out of Indian city of Bangalore. It was set up as SG Software Asia Pvt Ltd on 18 June 2000 & rebranded to Société Générale Global Solution Center on 18 March 2006...
- in Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
- Bank Republic - in Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
- Société Générale de Banque Jordanie in Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
- Société Générale de Banque au Liban in Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
Europe - Banka Popullore - in Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
- BELROSBANK - in Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
- Société Générale Private Banking - in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
- Société Générale Expressbank - in Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
- Splitska Banka - in Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
- Société Générale Cyprus - in Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
- Komerční Banka
Komercní banka
Komerční banka is one of the main banks in the Czech Republic. It serves about 1.5 million customers in more than 350 branches.The bank was founded in 1990 following separation of commercial activities from the former Státní banka československá . In 1992, the bank was partially privatized in...
- in Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
- Geniki Bank
Geniki Bank
Geniki Bank is a Greek financier group that provides complete banking and financing services. It was founded in 1937.The bank is traded at the Athens Stock Exchange since 26 January 1963...
- in Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
- Société Générale S.A. - in Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
- General Financing in Lithuania
Lithuania
Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
- Société Générale Bank & Trust Luxembourg - in Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
- Société Générale Securities Services - 100% subsidiary of Société Générale - in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
- Ohridska Banka S.C. - in Macedonia
Republic of Macedonia
Macedonia , officially the Republic of Macedonia , is a country located in the central Balkan peninsula in Southeast Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
- MobiasBanca - in Moldova
Moldova
Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
- Podgoricka Banka A.D.
Podgoricka banka
Podgorička banka is a bank operating in Montenegro. Founded in 1906 it offers services in corporate and retail banking....
- in Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
- Société Générale Finans - in Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
- Euro Bank S.A. - in Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
- BRD - Groupe Société Générale
BRD - Groupe Société Générale
BRD – Groupe Société Générale , is a Romanian bank in which the French Société Générale financial group holds a majority stake of 59.37%. It was rebranded after SG bought Banca Română pentru Dezvoltare from the Romanian State in 1999. It is currently the second largest bank by assets in Romania...
- in Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
- Banque Société Générale Vostok - in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
- Rosbank
Rosbank
Rosbank is a Russian commercial bank that was founded in 1993. It is the 8th biggest bank in Russia by assets and is a member of the french group Société Générale. Its headquarters are in Moscow....
- in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
- Rusfinans Bank - in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
- Société Générale Srbija - in Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
- SKB Banka - in Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
South America - Banco Cacique - in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
- Banco Pecúnia - in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
Fimat
Fimat International Banque S.A. is a global brokerage and prime brokerage organization and is a wholly owned subsidiary of Société Générale Group.Fimat businesses involve a range of clearing and execution services on listed or OTC derivatives and cash products.
Fimat was created in 1986, following the creation of the Paris-based MATIF (Marché à Terme International de France), the French Futures and Options Exchange, in February 1986. In 2005 Fimat completed the acquisition of Cube Financial.
Merged in January 2008 with Calyon Financial
Calyon Financial
Calyon Financial was a subsidiary of Calyon specializing in institutional futures and options brokerage, and was also a member of the Crédit Agricole Group....
to form Newedge
Newedge
Newedge Group is a diversified financial services group formed from the merger of Fimat and Calyon Financial, the brokerage arms of French financial giants Société Générale and Credit Agricole's capital markets business. It offers execution, clearing, prime brokerage investment, and asset financing...
([www.newedgegroup.com]). Newedge's holders are SG and Calyon.
Lyxor Asset Management
Lyxor Asset Management is an investment companyInvestment company
An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses....
based in France, and a wholly owned subsidiary of Société Générale. It offers exchanged-traded index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
s and other ETF
ETF
ETF may refer to:* Exchange-traded fund, an investment vehicle* European Training Foundation, a vocational training organization* European Transport Workers' Federation* Emergency Task Force, a tactical unit of the Toronto Police* Enriched text format...
s, exchanged-traded notes (ETN
ETN
Etn or ETN may refer to:* Erythritol tetranitrate, an explosive chemical compound* Exchange-traded note, a synthetic financial derivative* Erie Times-News, the daily newspaper in Erie, Pennsylvania...
), and several other products to private and corporate investors.
Economy
Société Générale's head office is in the Tours Société GénéraleTours Société Générale
Société Générale Twin Towers are two office skyscrapers located in La Défense, a high-rise business district, and in Nanterre, France, west of Paris. Their exterior designs are exactly identical....
in the business district of La Défense
La Défense
La Défense is a major business district of the Paris aire urbaine. With a population of 20,000, it is centered in an orbital motorway straddling the Hauts-de-Seine département municipalities of Nanterre, Courbevoie and Puteaux...
in the city of Nanterre
Nanterre
Nanterre is a commune in the western suburbs of Paris, France. It is located west of the center of Paris.Nanterre is the capital of the Hauts-de-Seine department as well as the seat of the Arrondissement of Nanterre....
, west of Paris. The company moved there in June 1995 from the former head office along Boulevard Haussman in the 9th arrondissement of Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
. The head office has 7,000 employees. The former head office remains as the company's registered office
Registered office
Registered office is a term used to describe the address which is registered with the government registrar as the official address of a company, an association or any other legal entity. Generally it will form part of the public record...
.
Controversy
In 2010 the French government's Autorité de la concurrence (the department in charge of regulating competition) fined eleven banks, including , the sum of 384,900,000 Euros for colluding to charge unjustified fees on check processingFrench check processing fee controversy of 2010
In 2010 the French government's Autorité de la concurrence fined eleven banks €384,900,000 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...
, especially for extra fees charged during the transition from paper check transfer to "Exchanges Check-Image" electronic transfer.
See also
- BRD - Groupe Société GénéraleBRD - Groupe Société GénéraleBRD – Groupe Société Générale , is a Romanian bank in which the French Société Générale financial group holds a majority stake of 59.37%. It was rebranded after SG bought Banca Română pentru Dezvoltare from the Romanian State in 1999. It is currently the second largest bank by assets in Romania...
- Inter-Alpha Group of BanksInter-Alpha Group of BanksThe Inter-Alpha Group of Banks was created in 1971 by six European Community banks in order to provide a platform for the regular exchange of ideas and to explore areas for cooperation between its member banks...
- List of French companies
- List of banks
- Jérôme KervielJérôme KervielJérôme Kerviel is a French trader who has a pending appeal of his conviction in the January 2008 Société Générale trading loss incident for breach of trust, forgery and unauthorized use of the bank's computers, resulting in losses valued at €4.9 billion.Société Générale characterizes Kerviel...
- Nick LeesonNick LeesonNicholas "Nick" Leeson is a former derivatives broker whose fraudulent, unauthorized speculative trading caused the collapse of Barings Bank, the United Kingdom's oldest investment bank, for which he was sent to prison...
- CITIC#Unauthorized Forex trades
- List of trading losses