It isn't usual that state officials would intermeddle with cases of private enterprises unless it becomes really serious and the possible consequences could reach solid troubles. It isn't deemed democratic and fair enough if public functionaries express their personal opinions about the trading on the market. When it nevertheless happens, the comments about the situation should affect the community in limited measures, often the requirement is in the main possibly lowest impact on the private business sector. Recently, Nicolas Sarkozy tends to do the exact opposite. He talks fully frankly about the problems in Societe General, a French bank nowadays generally known for its rogue trader. Jerome Kerviel, a 31-year-old employee, stimulates the dispute about the threats of the existence of Societe General on the market as well as the discussions about its eventual future. The case began when the trader falsified documents and breached computer access codes that consequently caused the biggest fraud in the history carried-out by single person. The following loss for the bank represents 4.9 billion Euros, but, unfortunately, "only" this isn't how the story ends. The bank's chief Daniel Bouton now faces a tough task as his position isn't certain anymore. The bank reputation altered and the institution's position has weakened. Societe Generale disclosed a massive trading loss and further asset impairments last week. The pressure on the head-officials is high, analysts said their future remains in doubt and Sarkozy told the press "high-paid management cannot escape their responsibilities when a major problem is discovered." There was also a possible danger which affirmed the bank could be offered on the market for the sale. If Bouton and other managers are forced to resign, the bank will be in an even weaker position, potentially opening the door to a deal. The possible bidders could include domestic rival BNP Paribas, Barclays in the U. K. or Italy's Unicredit. No one can in the present predict the future of Societe General, but one thing is clear. Its position on the market deteriorates constantly and the more the public and analysts speak about them, the worse their conditions are going to look like. And Sarkozy's statement just confirms that.
Edited by: Katarina Bosanska
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