BRD SocGen suspended from the stock exchange due to major fraud suffered by mother bank

BSE explained the decision of suspending the shares is based on maintaining order within the market and granting equal access to investment information, as the Stock Exchange Code stipulates.

Both BSE and the National Securities Commission (CNVM) were immediately informed about the fraud by BRD SocGen, the deputy general manager of the bank, Petre Bunescu told The Money Channel.

The official said the impact the fraud will have over BRD SocGen cannot be evaluated at the moment. Nevertheless, Bunescu said BRD should not be affected by the problem the mother bank is facing, as the two follow separate management roads.

Alin Brendea, operations manager within Prime Transaction brokerage company, said any news which makes waves within the exchange market must be explained to calm down investors that fear consequences.

Societe Generale this morning announced it is the victim of a 4.9 billion euros fraud within its brokerage unit. A Societe Generale broker committed the fraud.

Source: NewsIn