View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Media Law
March 26, 2012

MoS in payout to bank over ‘financial difficulties’ claims

By Andrew Pugh

The Mail on Sunday has agreed to pay damages to French bank Société Générale over a report claiming it was in ‘dire financial difficulties”.

In November the bank issued a high court writ over the story, which it claimed led investors to fear it was in danger of imminent collapse.

One investor reportedly threatened to move assets worth €5.45m as a direct result of the 7 August story headlined: ‘France and Italy stand by to bail out biggest banks”.

Two days after the story was first published the MoS carried an apology on its website which Societe Generale complained was hard to find and was not carried in the newspaper.

On Sunday this week the paper issued another apology. It read: ‘On August 7, 2011, we reported Société Générale was in dire financial difficulties because of its exposure to Greek debt, and that the French government was on standby to bail out the bank.

‘We accept that this was untrue; the bank was not in serious financial difficulties, nor was it on the brink of insolvency or in line for a bailout from the French government. We have apologised to the bank and have agreed to pay damages.”

In its original writ the bank claimed its senior management and communications teams in Paris and London had to spend considerable time dealing with the impact of the story.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

Both the chief executive and deputy chief executive appeared on television to give interviews allaying fears of its imminent collapse.

Société Générale claimed its share price suffered larger falls on the stock market than other major French banks, its credit default swap level had increased and other articles were published generating negative publicity for the bank.

Investment companies and private banks temporarily stopped trading with Soci̩t̩ G̩n̩rale citing loss of confidence, banking division SG Hambros faced a high volume of withdrawals and transfers, and had to deal with hundreds of calls from clients РSoci̩t̩ G̩n̩ral claimed.

It also alleged that Its French retail banking division had to hold detailed discussions with clients and SG Private Banking faced more withdrawals than expected.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network