Wednesday, August 7, 2013

Investopedia: Societe Generale Continues To Clean Up Its Act

The stocks of U.S. banks like Bank of America (NYSE:BAC) and Citigroup (NYSE:C), not to mention smaller regional players like Zions (Nasdaq: ZION), Regions (NYSE:RF), and Synovus (NYSE:SNV), have enjoyed strong rebounds on the back of the clean-up trade – ongoing improvements in bad debt inflow, credit ratios, and so on.

As bad as things got in the U.S., they were much worse in Europe and Societe Generale (Nasdaq:SCGLY) teetered on the brink of going the way of Lehman Brothers and Washington Mutual. Since going almost to the very edge of the cliff, though, SocGen management has been working hard to clean up the business, shore up its capital, and reposition the company for profitable growth. Although there is still a lot left to be done, and ample doubts as to whether they can do it, a strong second quarter and ongoing improvements are a good sign.

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