Societe Generale defers €1.35 billion of trade profits

Societe Generale holds back a huge amount of profits on hard-to-value derivatives, Risk Quantum analysis shows. 

Banks typically book sales of structured products and complex derivatives at their transaction price. Any profits implied by the seller’s valuation of the trade are deferred and then slowly transferred to the income statement over time. The amount of ‘day-one’ deferred profit and the rate at which this is recognised on the income statement is determined by accounting methods unique t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: