Societe Generale Said to Be Targeted Over Short-Term Funding

Societe Generale SA, which yesterday plunged 15 percent, is among banks being targeted by investors because of its perceived dependence on short-term funding, according to analysts at Royal Bank of Scotland Group Plc.

“The primary culprit for the share price decline is funding concerns for European banks in general and French banks in particular,” analysts including Stefan Stalmann said in note to clients today. “The mix of euro doubts and rating fears in recent days and weeks may have dented the confidence of funding counterparties, which has then fed back into equity markets.”