Update: Société Générale sets tongues wagging
20 November
Euromoney understands that Société Générale’s Corporate & Investment Banking unit suspended two senior employees at the end of October. Didier Meyer, its global head of FX options and spot trading, and Eric Leandri, its head of FX structuring for Europe and Asia, have been relieved of their duties.
No reasons have been given for the suspensions. Euromoney contacted SocGen, but it declined to comment on individuals. We also tried to contact the individuals involved, but they did not respond.
A spurt of activity in the options market by SocGen – it was particularly active at the long end of the EUR/USD curve – inevitably led to rumours that the suspensions were related to a large trade that had somehow gone wrong.
The talk in the market is that SocGen advised a client with huge exposure to the downside of EUR/USD to put on a €5 billion hedge through a combination of outright forwards and the purchase of longer-dated out-of-the-money EUR calls. Sources close to Meyer insist that no loss was incurred, which has been confirmed by SocGen. “We do not comment on any individuals. There has been no problem with any client trade or any wrong-doing towards a client in this context, and no financial loss towards a client or the bank,” says a SocGen spokesman.
There has also been unsubstantiated speculation that the suspensions are somehow related to a credit issue.
SocGen’s reticence on the subject – while understandable – will only serve to fuel the rumours. The decision to suspend Meyer and Leandri, who are said to be extremely popular with their colleagues, is hardly likely to act as a magnet to attract new staff to the bank. SocGen has been actively trying to hire in recent months in an effort to build up its FX business.
Meyer has worked for SocGen since 2001, when he joined the bank to set up an FX structuring desk in Paris. He had previously worked for both Alcatel and Elf. Leandri joined the bank in 2004, also from Alcatel, where he was head of treasury.
