By Adam Jones in Paris
The turmoil in the credit markets is likely to have an effect on financial institutions for years, according to the chairman of Société Générale, the French bank.
Daniel Bouton, one of the most senior figures in the French banking industry, said “an extremely sizeable credit bubble has burst”.
“When a bubble bursts, the distribution of the cost of the bubble among the thousands of involved parties around the world is probably going to take years.”
However, the veteran banker said that there had been no signs so far that the big US or European banks would be hit by losses of a menacing scale: “For the moment, I don’t see any news that suggests that the big financial players in the US or Europe are involved at a substantial level in relation to their size.”
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