SocGen Is Said to Weigh Shutting $4.7 Billion Prop-Trading Unit

The video discusses the status of proprietary trading in French banks, particularly BNP Paribas and Suction, post-financial crisis. It highlights the challenges and limited profitability of these units, the regulatory environment in France versus the US, and the strategic decisions made by these banks. The video concludes with the potential closure of these units due to low profits and the reallocation of capital to more profitable areas.

Which two French banks continued proprietary trading after the financial crisis?

• Crédit Agricole and BNP Paribas

• Société Générale and Crédit Agricole

• BNP Paribas and another bank

• BNP Paribas and Société Générale

Why were French banks allowed to continue proprietary trading?

• It was forbidden in the US

• It was highly profitable

• It was a global trend

• It was legally allowed in France

What was a potential reason for shifting capital away from proprietary trading units?

• High profitability

• Low profits and better use of capital elsewhere

• Increased competition

• Legal restrictions

What was the impact of the financial crisis on proprietary trading in French banks?

• It led to the complete shutdown of trading units

• It increased the profits

• It reduced the activities significantly

• It had no impact

What was the legal requirement for French banks regarding proprietary trading units?

• To create separate units

• To merge them with other units

• To expand their operations

• To increase their capital