The SocGen-Crisis

France's economy minister said Societe-Generale, reeling from losses blamed on a rogue-trader, is a bank in crisis and may need to ditch its chairman.

"Societe Generale is in a crisis situation," Economy Minister Christine-Lagarde told LCI television on Tuesday.

On January 24, SocGen said it had uncovered massive unauthorized stock trading by one of its employees that led to 4.9 billion euros ($7.22 billion) of losses at the 144-year-old bank. Jerome-Kerviel, a 31-year old junior trader, was placed under investigation for breach of trust and other misdeeds on Monday, but judges threw out the stronger accusation of fraud made by the bank and prosecutors and freed him.

Lagarde's comments put fresh pressure on SocGen's executive chairman, Daniel-Bouton, to step down after President Nicolas-Sarkozy turned up the heat.

Via Washington-Post