Courtesy of Mish.
A few days ago I learned, via a French blog, that I was fined 8,000 euros for quoting a French blogger. I would have known earlier, but the letter notifying me of the fine was sent in French.
In an earlier express letter packet, I could make out a few of the words, in particular noting a summons to appear before a tribunal in France. Needless to say, I did not go.
Let’s backtrack to my blog post that started it all.
On August 15, 2011, I posted BNP Paribas leveraged 27:1; Société Générale Leveraged 50:1; Sorry State of Affairs of U.S. Banks; Global Financial System is Bankrupt
- In that post I quoted Jean-Pierre Chevallier on his Business économiste monétariste béhavioriste blog, that BNP Paribas leveraged: 27!
- I also cited Chevallier’s Société Générale leveraged: 50!
Société Générale took exception to the numbers and came up with its own set of numbers. According to SG, its leverage was 9.3%.
A day or so later, Chevallier redid his calculations and I added this addendum.
Addendum:
Société Générale disputes the numbers and new calculations using the banks’ numbers are 28:1 or perhaps 23:1 not 50:1 as noted on Forex Crunch.
My position has not changed much. Something is seriously wrong at Société Générale. Banks do not plunge out of the blue on rumors. I do not know the precise leverage, but shares are acting as if Société Générale has severe capital constraints (which of course they will deny) and/or other major problems.
Société Générale was not happy to say the least. They wrote the SEC (in English) complaining about my blog.
The lengthy complaint went along the lines “I should accept as fact any numbers given to me by Société Générale”.
French Banking Primer
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