Societe Generale SA (SCGLY)

[tykundegex]

Article: SocGen sound, liquidity satisfactory: CEO in paper

http://www.reuters.com/article/2011/09/13/us-societegenerale-ceo-idUSTRE78C1G820110913



FRANKFURT | Tue Sep 13, 2011 7:40am EDT
(Reuters) - French bank Societe Generale's (SOGN.PA) exposure to periphery euro zone bonds is low and its liquidity situation is comfortable, chief executive Frederic Oudea told a German newspaper.

Asked in an interview by financial daily Handelsblatt if losses could be expected after financial sector weakness in August, Oudea said he could not speak for all banks "but we have communicated clearly that we have no problem."

Oudea, who also spoke at a financial conference sponsored by Handelsblatt last week, said: "Societe Generale has a solid basis. Our exposure to Greek, Irish, Italian, Portuguese and Spanish bonds is low and manageable under all conceivable scenarios.

"The group's activities are profitable and our liquidity situation is very satisfactory."

Oudea said European governments needed more fiscal discipline and convergence and he expected some sort of transfer mechanism to be established to help smooth the bloc's imbalances, although he said he was unsure whether euro sovereign bonds were the right solution.

(Reporting by Jonathan Gould; Editing by Dan Lalor)