Monday 25 June 2012

Investors wary of SocGen's toxic loan swamp

(Full post)



PARIS, June 25 | Mon Jun 25, 2012 3:59pm BST
(Reuters) - Societe Generale's long-running battle to cleanse its balance sheet of toxic assets left over from the 2008 financial crisis i s putting investors on their guard.

They worry the sense of urgency in dealing with the problem is fading at a time when economic growth is flatlining across the euro zone, which is being reflected in SocGen's poor stock-market valuation relative to other European banks.

"(SocGen) is trying to cut its stock of illiquid assets but you can tell it's tricky," said Yohan Salleron, a fund manager at Mandarine Gestion, which has around 1.5 billion euros ($1.88 billion) under management.
"We prefer (domestic rival) BNP Paribas."

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