French tax body to decide on Socgen Kerviel affair "within days"
Michel Sapin, Frances Minister of Finance, has confirmed that a decision will be made "within days" on whether Societe Generale’s $2.44bn tax deduction to subsidise losses made by trader Jerome Kerviel will be reclaimed. Analysts have warned however that a reclaim of the governmental aid would put the bank’s dividend at risk as well as affect its capital adequacy ratios.
French tax body to decide on Socgen Kerviel affair "within days"

PARIS, Nov 3 (Reuters) - State tax experts will decide "within days" whether a 2.2 billion euros ($2.44 billion) tax deduction granted to Societe Generale after losses caused by its rogue trader Jerome Kerviel should be reclaimed, France's finance minister said on Thursday.

Michel Sapin told France Info radio he had ask his tax administration officials to act swiftly. "I think it is a matter of days," he said.

A French court said in September the former trader was liable for only 1 million euros of the 4.9 billion in losses he racked up at the bank in 2008, the latest in a series of judgements on the case.

At the time, Societe Generale had been allowed to set off about 2.2 billion euros in tax against the loss.