Daily Management Review

France’s Societe Generale Settles Libor Case & Libyan Dealings


06/06/2018


Societe Generale presents its agreement papers to the court for approval to end the Libor manipulation accusations and more.



The “second-biggest bank” of France, Societe Generale, reported that it has come to an agreement with the authorities of France as well as the U.S. and it will settle “rigging of Libor interest rates” inquiries along with its Libyan dealings.
 
However, the exact amount of settlement was not revealed although, the bank informed that the said amount was provided in “its accounts”, as a result of which Societe Generale will not face any impact. In fact, the bank has also stated in the month that it has kept aside an amount of “one billion euros” for pulling plugs on “Libor and Libya disputes”.
 
Moreover, the agreements that took place between the bank, the “French financial prosecutor's office and the U.S. Department of Justice” would be submitted to the courts receiving approval stamp on them. According to a statement published by the bank, further details will be furnished post the public announcements of the settlements.
 
The Societe Generale is one of the banks who have paid settlement fine to the “U.S. tax authorities” for an attempt to “manipulate the London Interbank Offered Rate”. Likewise, Deutsche Bank had to shell out “$240 million” for the same, while among other prominent banks HSBC paid “$100 million”.
 
In an attempt to avoid the “potentially embarrassing court cases”, various lenders such “Barclays, Royal Bank of Scotland, Goldman Sachs and BNP Paribas” among others were forced to pay out hefty amounts.
 
Adding to the legal accusations on Societe Generale, the bank also faced allegations of channelling “bribes to associates of slain Libyan dictator Moammar Gadhafi’s son Seif al-Islam” during the reign of former.
 
Nearly a “billion euros” was paid by the bank sometimes in the last year for settling a case of “Libyan Investment Authority”, as the latter accused the bank of making payments of around “$58 million” to Leinada, a company registered in Panama, under a “corrupt scheme” for drawing LIA to invest in billions into “Societe Generale and its subsidiaries between 2007 and 2009”.
 
The announcement of settling the tax matter has put an end to a scandalous chapter of Societe Generale during which it also witnessed the “surprise departure of its deputy CEO Didier Valet in March”, and its “head of retail banking”, whereby shaking the investors.
 
References:
dailystar.com.lb







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