Blown-Up Trades at Heart of French Banks Erase $1.5 Billion
- Stock-trading revenue wiped out for BNP, SocGen, Natixis
- Banks struggled with hedging costs and canceled dividends
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A key money maker for French investment banks has blown up just as they prepare to deal with the fallout from the coronavirus crisis.
BNP Paribas SA, Societe Generale SA and Natixis SA all saw revenue from equities trading wiped out in the first quarter by heavy losses on complex derivatives, an area of traditional strength. Most of their rivals navigated the market panic more successfully in the wake of the outbreak, posting double-digits gains from the same business.