Societe Generale is pulling back from the U.S. mortgage-bond business just two years after building out the unit, according to two people with knowledge of the matter.
Bloomberg News reports that the bank is instructing traders of U.S. government-backed mortgage bonds to stop buying the securities, said the people, who asked not to be identified because the matter is private.
The directive comes as senior executives at the bank discuss scaling back from the $5.4tril market, the people said.
Societe Generale has seen a number of mortgage-bond traders depart over the last year, including Tae Park, a managing director who was charged with putting together the team in 2014. The bank aimed to “grab market share” as competitors such as Barclays, Royal Bank of Scotland and Morgan Stanley retrenched from the business, Park said at the time.
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