Société Générale (SocGen) has inked a liquidity agreement with Rothschild & Cie to prevent excessive volatility in its stock price, The Wall Street Journal reports. The French bank has allocated €170 million to Rothschild for trading its shares in the market to prevent price swings.
The bank aims to keep the stock price steady, rather than keeping it high. SocGen shares dropped after a U.K. tabloid published an article about the bank’s rumored perilous financial position. Rothschild has seven liquidity contracts with CAC 40 companies, such as GDF Suez.