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PARIS - EMPLOYEE shareholders at Societe Generale said on Wednesday they had started legal action following a multi-billion-euro rogue trader scandal at the French bank.
Employees and former employees, represented by the ASSACT SG association, form the bank's largest shareholder, holding around 10 per cent of its capital and more than 10 per cent of voting rights.
The association said it was 'its duty to contribute to shedding light on the recent disappointment of which all Societe Generale shareholders are victim, notably employees and former employees'.
'We are filing suit because we want to be kept informed of the affair's progress,' said its head Patrice Leclerc, criticising a 'lack of transparency due to the fact Societe Generale staff are not represented on the board'.
He stressed his association did not want to single out rogue trader Jerome Kerviel, who is under investigation over the losses of 4.8 billion euros (S$10 billion) announced by the bank last Thursday.
But he criticised the fact that around 50 people in the bank's investment division earned more than its chairman, Daniel Bouton.
'These excesses are no guarantee of good management, and our members want reason to prevail.'
Three groups of minority Societe Generale shareholders have already filed suit alleging insider trading and manipulation of share prices in relation to two major share sales this month by Societe Generale board member Robert Day.
The French financial regulator AMF said onTuesday it had opened an investigation into share sales in the days before the rogue trade scandal emerged. -- AFP
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