WASHINGTON: US authorities have charged two managers at French bank Société Générale with taking part in a scheme to manipulate the global US dollar Libor benchmark interest rate.
Danielle Sindzingre, 54, the bank’s former global head of treasury, and her subordinate Muriel Bescond, 49, its former head of treasury in Paris, were accused in an indictment filed in a New York federal court of submitting false information about the rates at which the bank was able to borrow money.
The two defendants are not currently in the US, according to John Marzulli, a spokesman for US prosecutors in Brooklyn. He declined to comment on whether or when they might be extradited.
Attorneys for the defendants could not immediately be identified.
SocGen said on Friday it was co-operating with authorities over the matter.
“Société Générale has received formal requests for information from several authorities, including the US Department of Justice, in connection with investigations regarding submissions to the British Bankers Association for setting certain benchmark rates, including the London Interbank Offered Rates (Libor),” it said in a statement.
“Société Générale is cooperating with the investigating authorities,” it added.
Sindzingre is currently listed on the bank’s website as global co-head of fixed income, credit and currencies. Bescond’s LinkedIn page says she is global head of short-term derivatives.
Banks use Libor to set rates on hundreds of trillions of dollars of mortgages, credit cards and other loans. Libor rates in several different currencies are calculated based on banks’ reports of how much interest they pay to borrow money.
Prosecutors said that from about May 2010 to October 2011, Sindzingre, Bescond and several other people who are not charged or named in the indictment caused Société Générale to report false lower rates that were used to set the US dollar Libor.
According to the indictment, the scheme aimed to shore up the bank’s reputation after outside analysts drew attention to higher-than-average interest rates Société Générale had been reporting.
The false reports at times led to lower US dollar Libor rates, affecting millions of transactions tied to the benchmark and causing over $170 million in harm to global financial markets, prosecutors said.
The indictment said that in about June 2010, Sindzingre became concerned that the false reports could catch the attention of financial regulators, and suggested to her superiors that they begin to increase the reported rates to match the bank’s actual borrowing rate. Nonetheless, the false reports continued, according to the indictment.
Sindzingre and Bescond are charged with conspiracy and transmitting false reports.
Banks have paid roughly $9 billion to resolve Libor-rigging probes worldwide, and several people have been convicted of criminal charges.
US accuses former Société Générale bank managers of Libor scheme
US accuses former Société Générale bank managers of Libor scheme
Saudi ports brace for cargo surge as shipping lines reroute
RIYADH: Preliminary estimates suggest that several global shipping lines could reroute part of their operations to Saudi Arabia’s Red Sea ports, potentially adding 250,000 containers and 70,000 vehicles per month, according to Rayan Qutub, head of the Logistics Council at the Jeddah Chamber of Commerce, in an interview with Al-Eqtisadiah.
“Any disruption in the Strait of Hormuz not only affects maritime traffic in the Arabian Gulf but could also reshape global trade routes,” Qutub said, highlighting the strait’s status as one of the world’s most critical maritime chokepoints for energy and goods transport.
With rising regional tensions, international shipping companies are reassessing their routes, adjusting shipping lines, or exploring alternative sea lanes. This signals that the current challenges extend beyond the Arabian Gulf, impacting the global supply chain as a whole.
Limited impact on US, European shipments
The effects of these developments will not be uniform across trade routes. Qutub noted that goods from China and India, which rely heavily on routes through the Arabian Gulf, are most vulnerable to disruption. In contrast, shipments from Europe and the US typically traverse western maritime routes via the Suez Canal and the Red Sea, making them less susceptible to regional disturbances.
Saudi Arabia’s strategic location, he emphasized, strengthens the resilience of regional trade. The Kingdom operates an integrated network of Red Sea ports — including Jeddah, Rabigh, Yanbu, and Neom — that have benefited from substantial infrastructure upgrades and technological enhancements in recent years, boosting their capacity to absorb increased cargo volumes.
Red Sea bookings
Several major carriers, including MSC, CMA CGM, and Maersk, have already opened bookings to Saudi Red Sea ports, signaling a shift in operational focus to these strategically positioned hubs.
However, Qutub warned that rerouted shipments could increase sailing times. Cargo from Asia, which normally takes 30-45 days, might now require longer voyages via the Cape of Good Hope and the Mediterranean, potentially extending transit to 60-75 days in some cases.
These changes are also reflected in rising shipping costs, driven by longer routes, higher fuel consumption, and increased insurance premiums — a typical response when global trade patterns shift due to geopolitical pressures.
Qutub emphasized that Saudi Arabia’s transport and logistics sector is managing these developments through coordinated government oversight. The Ministry of Transport and Logistics, the Logistics National Committee, and the Logistics Partnership Council recently convened to evaluate the impact on trade and supply chains. Regular weekly meetings have been established to monitor developments and implement solutions to safeguard the stability of supplies and continuity of trade.
He noted that the Kingdom’s logistical readiness is the result of long-term strategic investments, encompassing ports, airports, road networks, rail systems, and logistics zones. Today, Saudi logistics integrates maritime, land, rail, and air transport, enabling a resilient response to global disruptions.
Qutub also highlighted the need for the private sector to continuously review logistics and crisis management strategies, develop alternative plans, and manage strategic stockpiles. Such measures are essential to mitigate temporary fluctuations in global trade and ensure smooth supply chain operations.
