Hin Leong’s post-scandal ripples continue to be felt in the banking industry with Societe Generale making the latest decision to close its Singapore-based trade commodity desk.
Societe Generale closes its trade commodity desk in Singapore after being hit by Hin Leong’s accounting scandal which involved inflated asset values and undisclosed losses at the oil trader, according to a «Bloomberg» report citing unnamed sources.
«Natural resources financing is one of Societe Generale's core expertise,» the bank said in a statement.
«The bank is and will remain committed to the Trade Commodity Finance sector, including in Asia. Societe Generale continuously adapts its set up to better serve its global and local clients and leverages its presence and strengths in Asia to bring proximity and appropriate solutions to its clients.»
Hong Kong Shift
All front office staff dealing with transactions in the Singapore unit have been dismissed while some administrative workers have been retained, the report added.
And moving forward, the bank will cut ties with small and medium-sized commodity trading firms based in Singapore. Large commodity traders with operations in Singapore will be handled by Hong Kong.
Hin Leong's shortcomings were exposed earlier this year when it was revealed that it held debt belonging to over 20 banks totaling $3.8 billion including $240 million with Societe Generale.
