SocGen to Shrink Trading Unit, Cut Costs After Market Rout
- Bank sees fixed-income, commodities, currency trading down 29%
- Lender to review less profitable trading activity after slump
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Societe Generale SA is shrinking its markets business and cutting an additional 500 million euros ($567 million) of costs to combat the market rout that sent trading revenue tumbling.
The Paris-based bank is replacing global markets head Frank Drouet and cutting about 8 billion euros ($9.1 billion) of risk-weighted assets. SocGen will review less profitable fixed-income and currencies activities after a 29 percent decline in fourth quarter revenue, while seeking to maintain its position in equity derivatives.