SOCGEN INVESTORS yesterday lashed out at Daniel Bouton, the long-standing chairman of Société Générale, over the fraud that cost France's second-biggest bank €4.9 billion.
In a hostile meeting, Mr Bouton denied accusations that he had gambled with shareholders' money and turned the bank into a casino.
One shareholder called for his resignation, while another said he should forgo more than the six months of his pay as initially announced.
It was the first time the chairman of France's second-biggest bank had appeared before shareholders since the rogue trading scandal that has rocked the country broke in January.
Shareholders expressed their incredulity about the findings of a damning internal report published on Friday that detailed weak procedures, poor implementation and bad management in SocGen's investment bank.
These deficiencies opened the way for Jérôme Kerviel, a junior derivatives trader, to place €50 billion of allegedly unauthorised trades.
One shareholder said he was in "disbelief" when he read the report, while others posing tough questions over responsibility for bank failings were applauded.
Patrice Leclerc, chairman of Assact, the staff shareholders' group which holds 7.5 per cent of the shares, urged the management to spurn the high-risk, high-reward business of investment banking.
SocGen was one of the French banks hardest hit by the US subprime crisis, with more than €2.6 billion of writedowns.
SocGen shares have lost half their value over the past 12 months, falling by 51 per cent to €66.10. They have underperformed BNP Paribas, SocGen's larger rival, by 33 per cent.
However, some investors congratulated Mr Bouton on his courage for facing investors. Mr Bouton, whose glittering career as one of France's most talented businessmen has been greatly tarnished, has faced great pressure to resign. - ( Financial Times service)
