Societe Generale’s continued struggle with litigation for past misconduct is overshadowing a jump in demand for structured products and a brighter picture for consumer banking in eastern Europe.
Bloomberg News reports that the bank said Wednesday that it increased legal provisions by $354m for disputes that it didn’t specify.
Societe Generale’s $1.1bn euro settlement in May with the Libyan Investment Authority, already covered by the bank’s cash pile for legal provisions, led to accounting effects on revenue, taxes and provisions in the second quarter, but had a neutral effect on the bottom line and capital position.
In the meantime, Bloomberg News reports that Credit Suisse Asset Management plans to spin out a $1 billion quantitative hedge fund later this year, according to a person familiar with the matter.
Credit Suisse Quantitative and Systematic Asset Management will be a separate group as part of a management buyout, said the person who declined to be named discussing firm matters.