CFO Promoted to Help Rescue SocGen

Reeling from its recent trading scandal and subprime mortgage-related losses, the French bank nonetheless is flush with $8.7 billion in new capital.
Stephen TaubMarch 17, 2008

Societe Generale, which was rocked in January by a $7 billion trading scandal, promoted CFO Frederic Oudea to deputy chief executive, alongside existing deputy chiefs Philippe Citerne and Didier Alix.

Oudea, who had been CFO since January 2003, will help implement the bank’s strategic plan for 2008 through 2010, Dow Jones reported. Societe General, France’s second-largest publicly listed bank in terms of market value, last week raised about $8.7 billion in capital in a share offering. The share issue was oversubscribed by 184 percent, with total subscription orders of more than $16 billion, the bank said in a statement.

The new capital should help the bank overcome unauthorized bets by a low-level trader, Jérôme Kerviel, which created the $7 billion trading loss, and $4.1 billion in write-downs linked to the U.S. subprime mortgage crisis.

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Oudea has been with the bank since 1995. In 1996 he was appointed to head Societe Generale’s corporate banking arm in London. Two years later he took over the company’s global supervisory and development of equities division. In May 2002 he was named deputy CFO.

Before joining the bank, Oudea spent eight years holding finance-related positions in the French civil service.