SocGen CEO takes over risk controls after U.S. penalties

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FILE PHOTO: The logo of Societe Generale is seen on the headquarters at the financial and business district of La Defense near Paris

PARIS -Societe Generale Chief Executive Frederic Oudea will take control of the French bank’s risk and compliance functions as it drew a line under U.S. legal proceedings that cost it $2.7 billion.

Deputy CEO Diony Lebot, who has overseen remediation programmes related to the 2018 legal proceedings, will take over responsibility for the bank’s environmental, social and governance policies.

The changes will be effective from Jan. 17, 2022.

The reshuffle comes after a three-year deferred prosecution agreement (DPA) with the U.S. Department of Justice expired.

The bank had reached the deal in 2018, agreeing to pay a total of $2.7 billion to settle a series of legal disputes, including investigations into its handling of dollar transactions in violation of U.S. sanctions against Cuba and other countries.

A DPA is an agreement between a prosecutor and a defendant in which the prosecutor commits to dismiss the charges after a period of time, provided the defendant meets certain conditions.

As part of the reshuffle announced on Friday, Gaëlle Olivier will become deputy general manager and chief operating officer, supervising the bank’s resources and coordinating IT, digital transformation and innovation functions.

Last month, Chief Financial Officer William Kadouch-Chassaing left the lender, to be replaced by his deputy, Claire Dumas.

(Reporting by Dominique Vidalon and Silvia AloisiEditing by Mark Potter)