PARIS (MNI) – Societe Generale, whose shares tumbled more than 10%
in early trading, said Monday that its exposure to debt-laden peripheral
European governments was “very manageable.”
The French bank said in a statement that its exposure to Greek
government bonds was E900 million as of Sept. 9, and that its combined
exposure to Greece, Ireland, Italy, Portugal and Spain was E4.3 billion.
“Societe Generale’s foundations are solid. Its exposure to GIIPS
sovereign debt is low and very manageable in any final scenario,” the
bank’s’s chief executive Frederic Oudea said in a statement.
The French bank issued the statement as its shares fell sharply,
along with the French stock market, amid reports that Moody’s Investors
Service was preparing to downgrade the three major French banks because
of their exposure to Greece.
At mid-morning, Societe Generale shares had rebounded from earlier
lows and were down 8.8% at E15.91.
In addition to detailing its peripheral debt exposure, Societe
Generale said it had completed its long-term funding program for this
year and had “successfully managed” to adapt to the reduced access to US
dollar funding.
–Paris newsroom, +331-42-71-55-40; paris@marketnews.com
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