'The bank’s direct financial losses stemming from one of its traders’ fraud have been estimated at 5bn. In addition, the fact that the bank lost one of its credit rating positions means it will grow .25% to .75% more expensive for them to borrow on the bonds market,’ Finam investment bank’s analyst Vladimir Sergievskiy said to UrBC.

Societe Generale, France’s second largest bank, lost Ï4.9bn ($7.1bn) due to one of its traders’ gerrymandering related to European stock exchanges’ indices futures. An 80% decrease in the bank’s annual profit is expected. The bank owns a daughter enterprise called BSGV in Russia, with a representation in Yekaterinburg.

'Perhaps the bank will have to raise its deposit interest rates in order to make up for the loss of reputation. Then, the immediate plummeting of the bank’s shares made their capitalization go down 4%, with the expected continued downfall by as much as 12%,’ Mr. Sergievskiy added.

'The full consequences this incident implies the business will only become apparent after the investigation and the court hearing of the case are completed, as it’s hard to say at the moment just how much responsibility the bank had in terms of letting this happen,’ he noted.

'In case things turn out badly for them, Societe Generale might ask for the state support, officially go bankrupt, or sell a large shareholding to a dependable investor from China or the Arab world,’ the analyst said.