Bloomberg reports that French bank Societe Generale has posted a record fourth-quarter loss of some $4.9bn, following that $7.1bn rogue trading scandal. Despite the scandal, the bank will still post a $1.3bn profit for 2007. The bank's corporate and investment banking unit took subprime lending related write downs of $3.8bn last year, and SocGen warned that further write downs were possible in the current quarter.
Yep, it's online. We're now open for business.
The fourth-quarter was a really tough one for most of the firms operating in the financial marlets. Here's a note of who won (and who didn't) in the last trading period:
For those of you with the stomach to plough through this, here's the preliminary internal report compiled by Societe Generale in connection with that $7.1bn rogue trading affair:
Credit Suisse is busy investigating the extent of those errors and mispricing of assets which resulted in that unexpected $2.85bn asset write down announced Tuesday. And, although fraud cannot be ruled out at this stage, there is said to be currently no evidence to suggest that this might have been the case.
Reuters reports that Bank of Montreal is to take write downs of some $324m in the first quarter, relating to trading losses and valuation adjustments at its BMO Capital Markets division.
Peter Wuffli (UBS), Stan O'Neal (Merrill Lynch) and Chuck Prince (Citi) all stepped aside or were fired in the last year or so. Jim Cayne at Bear Stearns was kicked upstairs to the Chairman's office. Will Brady Dougan, Credit Suisse's popular CEO be next to suffer at the hands of the US mortgage securities crisis ?
The wags are at it already. See the photo immediately to the right.
Well, another shoe dropped Tuesday, as Credit Suisse announced that it had overvalued its asset backed securities by at least $2.85bn, blaming 'mismarkings and errors' by 'a small number of traders' in structured credit trading. It's now the turn of staff over at rival UBS to smirk - at least for now, the heat is off their firm.
Here's another one of those 'messy' banking stories that our readers appear to love.