Connect with us

Hi, what are you looking for?


Siemens withdrew cash from Societe Generale

PARIS, Sept 20 – German industrial giant Siemens transferred a large sum of money from Societe Generale to the European Central Bank, but not because of doubts on the safety of French banks, a source told AFP on Tuesday.

A source close to the matter said Siemens had placed a short-term investment at the Societe Generale and when the placement matured, decided to transfer the funds to the ECB where the deposit would perform better than if placed at a bank.

“This goes back to July,” before the results of the stress tests on European banks and before markets slumped on nervousness over the eurozone debt crisis, the source said in contradiction to a report in the Financial Times which said the withdrawal took place two weeks ago.

According to the report in the FT, also quoting a source with direct knowledge of the matter, Siemens withdrew more than 500 million euros ($683 million) from a large unnamed French bank and transferred it to the ECB.

It was a sign, the newspaper said, of how companies were seeking havens for their cash during the eurozone debt crisis.

Siemens withdrew the money partly out of concerns about the future financial health of the unnamed bank and partly to benefit from the higher interest paid by the ECB, FT said.

Siemens is only one of a handful of large companies that have a banking licence allowing them to deposit cash directly with the ECB.

Contacted by AFP, Siemens dismissed the FT report as “speculation”. Societe Generale and the ECB also declined to comment.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...