British tabloid escapes with warning over SocGen story

22nd January 2013, Comments 0 comments

France's stock market regulator AMF said Tuesday it will not sanction British newspaper the Mail on Sunday for an article it published implying the imminent collapse of Societe Generale which caused the French bank's share price to crash.

AMF opened an inquiry in August 2011 after swirling rumours about the health of the bank saw its share price suddenly drop over 20 percent on August 10 of that year, just as the debt crisis was sweeping in full force through Europe.

The regulator subsequently found that an article by the Mail on Sunday on August 7, 2011, had "greatly exaggerated the reality" of the bank's financial problems, which "could have wrongly influenced the markets."

Though AMF acknowledged that the newspaper had quickly issued an apology to Societe Generale, it warned the tabloid to "keep a careful eye on rules relating to the publication of information regarding listed financial instruments on regulated markets."

© 2013 AFP

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