Société Générale is one of France’s major commercial banks, running general-banking and foreign-exchange operations across the globe. Its home base sits in Paris, but its footprint stretches much wider.
The story starts in 1864. The bank launched to offer general-banking and investment services. Then came a massive shift. In 1946, the French state nationalized the sector. Legislation from the previous year gave the government the power to take over key financial players. The state absorbed the central bank, the Banque de France, plus the four leading commercial banks. Together, these entities held half of all assets and liabilities among French banks at the time.
Private ownership didn’t return until 1987.
The bank spent the intervening decades rebuilding its global reach. A major push occurred in 1998. Société Générale bought the Japanese bank Yamaichi Capital Management. It also acquired two U.S. investment firms: Barr Devlin and Cowen & Company. Cowen would later be spun off in 2006.
Expansion continued into the early 21st century. The bank moved into eastern Europe. It bought the Czech bank Komerční Banka, among others.
Then came the crash. In early 2008, Société Générale reported a staggering loss. Roughly $7.2 billion vanished. The bank blamed it on a rogue trader.
