Bouton to step down as SocGen chief

Following is a letter sent to the Editor of the Financial Times:

It is very good news when a senior manager of a financial institution who has presided over billion euro losses decides to take some responsibility! We have not seen enough of this in Europe (“Bouton to step down as SocGen chief” FT April 17 2008)

Keeping the chairmanship is hardly stepping down and taking responsibility.

The fact that the executive team heading up Société Générale could secure additional capital from shareholders after having let a junior executive run up billion euro losses continues to amaze and raises questions about shareholders who, not only don´t hold their managers to account, but reinvest their capital for these same managers to mismanage, raises questions about some fund managers as well.

If fund managers don´t hold their managers to professional standards then these fund managers should be the first to go.

Onésimo Alvarez-Moro

See article:
Daniel Bouton is to step down as chief executive of Société Générale, paying the price for the damage done to France’s second-largest bank after the rogue trading scandal that cost it €4.9bn.

Mr Bouton will remain as chairman of the bank that he has headed for the past 11 years – but it is unclear for how long.

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