SocGen investment bank chief said to be replaced

Fri May 30, 2008 3:32pm BST

[-] Text [+]

PARIS (Reuters) - The top executive at Societe Generale's (SOGN.PA) investment banking unit, Jean-Pierre Mustier, is being replaced in the wake of the French bank's rogue trading scandal, two banking sources said on Friday.

Mustier, once tipped as a future chief executive, was in overall charge of SocGen's investment banking unit in January when the bank disclosed 4.9 billion euros (3.85 billion pounds) of trading losses which it blamed on unauthorised trades by Jerome Kerviel.

He will be replaced by Michel Peretie, ex-chief executive of Bear Stearns in Europe, as head of corporate investment banking (CIB) at SocGen, one of the sources said.

Neither source agreed to be identified.

SocGen declined to comment.

Mustier, recently described as a "key" figure at SocGen by chief executive Frederic Oudea, was expected to remain at the bank on giving up the CIB role at least for the time being.

The shake-up was first reported by French daily La Tribune on its website.

It is the second high-level fallout from the Kerviel scandal after executive chairman Daniel Bouton split his job and transferred his chief executive job to Oudea almost a month ago.

Credit headwind

News headlines speak of recovery, but financing is still a big problem in Germany. The dearth of credit to tide firms over is frustrating policymakers, who are blaming reluctant banks and there is little agreement on how best to increase lending flows. Full Article