SocGen Fires, Credit Suisse Warns

Societe Generale's Russian unit Rosbank has dismissed Chief Executive Vladimir Golubkov following his prosecution for bribery and will launch a search for a successor, it said on Monday.

Reuters reports that the bank is seeking to reassure markets that it can overcome the latest blow to its underperforming Russian subsidiary after a years-long turnaround campaign that has cost billions.

Rosbank said its board had fired Golubkov with immediate effect. His first deputy, Igor Antonov, will continue as acting chief executive until a replacement can be found.

Golubkov was arrested this month after being filmed by investigators with piles of cash on his office desk. He pleaded not guilty to bribery charges that, if he is convicted, could put him behind bars for seven years.

SocGen's Russian unit fires CEO Golubkov

The news agency also reports that Credit Suisse's chairman warned that a long-running tax dispute with the United States over hidden Swiss bank accounts could easily escalate and spill over to rivals if not settled.

'What looks to be a painful solution at first glance is better for everyone than none at all', Urs Rohner was quoted as telling the Neue Zuercher Zeitung daily on Tuesday.

'Should the efforts to settle fail after nearly three years of intense negotiating, it could lead to an escalation of the fight. I can only warn of this', Rohner said.

Credit Suisse warns of U.S. tax spat escalation if talks fail



image: © Pavel "KoraxDC" Kazachkov

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