SocGen CEO Frederic Oudea Tells Reuters Bank Recaps Won't Solve Crisis

(Click here to see my video interview with Frederic Oudea, Chief Executive of Societe Generale)

By Lionel Laurent

PARIS | Fri Oct 7, 2011 10:21am EDT

(Reuters) - A recapitalization of European banks is not needed and would not solve a crisis of confidence in the euro zone's ability to manage its sovereign debts, Societe Generale's chief executive told Reuters Insider TV on Friday.

Shares in France's second-largest bank have plunged nearly 50 percent over the last three months as concerns have grown about its financial strength, prompting it to announce a plan to cut costs and sell assets to free up 4 billion euros in capital.

Calling on euro zone leaders to sort out the unfolding Greek debt drama "as quickly as possible," Frederic Oudea said the main problem for banks was not one of capital but one of liquidity as funding-market confidence peels away.