Earlier this year, SocGen was among more than 20 Singaporean and international banks owed US$3.8 billion ($5.21 billion) by oil trader Hin Leong, which filed for creditor protection after crude prices crashed. The French bank, which was owed US$240 million by the firm, later decided to freeze the allocation of new funds to oil traders in Asia Pacific.
Societe Generale SA is closing its trade commodity finance unit in Singapore after the collapse of Hin Leong Trading (Pte) Ltd. prompted the bank to halt fresh funding to such firms in the region.
The bank is dismissing all front office staff dealing with transactions, while still keeping some administrative workers, people with knowledge of the matter said, asking not to be named because the matter is private. Large Asian commodities trading clients with operations in Singapore will now be handled by Hong Kong, the people said. SocGen is cutting ties with Singapore-based small and medium commodities trading firms.
