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Societe Generale's Mea Culpa

From AFP.. "PARIS (AFP) — Societe Generale bank on Monday reported an 83-percent collapse in third-quarter profits on provisions and write-downs but its shares gained 2.0 percent.

The bank, hit by a huge unauthorised trading scandal at the beginning of the year, said the provisions and write-downs had arisen mainly in its financing and investment divisions." I recall the massive news coverage on the sacrificial lamb that had been chosen by the Bank. This was early 2008. I was very suspicious about this story as it would provide a preemptive cover for derivative and cds losses they had to see coming. I wonder if the list below had anything to do with it ?

Lehman Brothers Counterparty risk *
 Q2 2008 (€ m)2007 (€ m)
Société Générale 473,329487,959
Credit Agricole383,995364,178
BNP ParibasNA597,578
NatixisNA202,928
Barclays460,423352,133
Deutsche Bank1,138,0901,193,131
Credit Suisse277,362331,807
UBS652,972757,271
* European banks - outstanding trading positions with Lehman Source: JPMorgan estimates, Company data

 
It was during the Third Quarter that they would have got out their Cheque Books after the Lehman's auction.



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