Societe Generale deputy chief executive exits over Libor disagreement

Societe Generale Uncovers Huge Fraud
Societe Generale deputy chief executive steps down over Libor dispute (Source: Getty)

Societe Generale deputy chief executive Didier Valet has resigned following a “divergence of approaches”, the bank said in a statement today.

The disagreement was related to “the management of a specific legal matter”, which is understood to be the investigation into the rigging of the London interbank offered rate (Libor).

The statement said that Valet “resigned in order to preserve the bank’s general interests”.

Read more: Two former Societe Generale bank managers charged in US over Libor rigging

He will be replaced on an interim basis by chief executive Frederic Oudea.

“The board of directors, and the general management wish to warmly thank Didier Valet for the quality of his commitment and his career within the group. Didier Valet succeeded in transforming the corporate and investment banking activities, building a profitable and sustainable model,” the statement said.

The French bank is one of a number of banks caught up in the investigation into the rigging of Libor by US authorities.

Two of its bankers were indicted over Libor manipulation last year by the US Department of Justice.

Read more: A decade on, banks still haven’t learnt from the Kerviel fraud case

In 2009 Jean-Pierre Mustier, former head of SocGen’s investment bank, stepped down following massive losses caused by rogue trader Jerome Kerviel.

Kerviel, who was part of Mustier’s divison, lost €4.9 bn (£4.3bn) in unauthorised trades in 2008.

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