Jefferies Likes Deutsche Bank over Societe Generale

Don’t ask Jefferies why they don’t have a buy rating on Societe Generale SA (EPA:GLE) (OTCMKTS:SCGLY). They think the real value in the Eurozone is not found in SocGen but rather Deutsche Bank AG (NYSE:DB) (ETR:DBK), a point they outlined in a recent research report.

Deutsche and Societe Generale both have tail risks

While both Deutsche Bank AG (NYSE:DB) (ETR:DBK) and Societe Generale SA (EPA:GLE) (OTCMKTS:SCGLY) have tail risk, Societe Generale has greater exposure to the I-Banking industry post crisis. SocGen faces tail risk from its Russian exposure, Jefferies analysts Omar Fall, Joesph Dickerson, Anish Lakhani and William Davison note.  Deutsche Bank’s tail risk is from litigation and...