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SocGen expects to pay $1.9bn in fines

SocGen expects to pay $1.9bn in fines

James Mitchell
— 1 minute read

French banking giant Societe Generale expects penalties of $1.9 billion relating to its dispute with US authorities over international sanctions violations.

Reuters this week reported that the penalties will be close to 1.2 billion euros ($1.9 billion), which would almost entirely be covered by provisions.

“Société Générale expects that the amount of the penalties in the US Sanctions Matter will be almost entirely covered by the provision for disputes allocated to this matter,” the bank said on Monday.

Société Générale has entered into a phase of more active discussions” with the authorities investigating past dollar transactions involving countries under US sanctions.

“At this stage, Société Générale expects that the amount of the penalties in the US sanctions matter will be almost entirely covered by the provision for disputes.”

The bank’s provisions set aside to cover penalties related to legal disputes totals 1.43 billion euros.

In June, the bank agreed to pay $1.3 billion to authorities in the United States and France to end the disputes over transactions made with Libya and over the suspected rigging of Libor.

In March, the group’s deputy CEO Didier Valet, who was in charge if investment banking activities, left the company.

Société Généralee said his departure came after “a divergence of approaches regarding the management of a specific legal matter, which predates his appointment as deputy CEO.”

 

SocGen expects to pay $1.9bn in fines
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