Société Générale fined $860 Million

ArticleBanking crisisJune 6, 2018 - 4:05:17 AM

The French bank will pay more than 860 million dollars in fines for corruption of Libyan officials and manipulation of a reference rate.

During four years between 2004 and 2009, Société Générale paid $90 million in kickbacks to a Libyan trader, who then paid and bribed Libyan officials, the U.S. Department of Justice said. This enabled Société Générale to obtain 13 investments from Libyan banks and make a profit of 523 million dollars.

Moreover to a $585 million fine for corruption abroad, Société Générale have to pay $275 million for manipulating the interbank rate between May 2010 and October 2011.

These deplorable actions, sponsored by Société Générale's senior management, have changed interest rates, futures and other financial products around the world. In addition, according to the Ministry of Justice, employees also manipulated the Libor based on the Japanese yen.

This is an unprecedented event in the banking sphere because it is the first case of international corruption coordinated between the American and French governments. The United States renounces half of the 585 million dollars owed by Société Générale. However, the bank will pay the other half to the French government...

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