Sarkozy criticises SocGen head

French President Nicolas Sarkozy said in a newspaper interview today that it was wrong for the head of Société Générale to sidestep…

French President Nicolas Sarkozy said in a newspaper interview today that it was wrong for the head of Société Générale to sidestep responsibility for the French bank's trading scandal.

"I just don't understand the Société Générale situation. When the chairman of a company experiences a disaster of this magnitude, and he does not assume the consequences of this, that is not normal," Mr Sarkozy was quoted as saying in Le Parisien.

"For someone to make €7 million a year does not shock me. But on one condition, that he assumes his responsibilities. That's what the problem is with Daniel Bouton," added Mr Sarkozy.

"I've got nothing against him. But you can't say 'I'm going to be paid €7 million a year' and then, when there's a problem, say 'It's not me.' That, I cannot accept."

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Mr Sarkozy's criticism comes after SocGen chairman and CEO Mr Bouton said that an earlier offer he had made to resign was no longer on the table.

On January 24th, SocGen unveiled €4.9 billion ($7.26 billion) of losses that it blamed on rogue deals carried out by trader Jerome Kerviel.

Mr Kerviel has been placed under formal investigation for breach of trust, computer abuse and falsification. He is being held at a Paris prison.

Mr Sarkozy has attacked SocGen's management team before over the trading scandal. On January 28th, Mr Sarkozy said the bank's management had to face up to their responsibilities over the trading scandal.

Mr Bouton dismissed the political pressure when the bank unveiled its annual results last week, saying it was a private company that decided on its own appointments.

Finance Minister Christine Lagarde reiterated in a separate newspaper interview today that it was up to SocGen's board to decide the fate of its senior managers.

SocGen shares closed at €64.85 yesterday. The bank has a current stock market value of around €30 billion.