[ by Howard Haykin ] The dominoes in the financial industry continued to fall, as Société Générale ("SocGen") of France reported that Q2 net profits had fallen 42% to €433 million, or $533 million, from one year ago.  SocGen's earnings were way short of analyst expectations. The bank feels it's making progress in bolstering its capital cushion - quarter after quarter with its transformation strategy and in line with its objectives - "despite a challenging environment." Yet, with a souring global economy, the French bank continues to face a series of charges related to past acquisitions: (i) €250 million writedown on Rosbank in Russia; (ii) 200 million write-down of the TCW Group, the fund firm in Los Angeles.  Analysts are waiting to see whether Société Générale sells off TCW as part of a broader plan to shed assets to raise money. With Each Successive Weak Earnings Report... from SocGen's and its peers, the the market has become increasingly concerned that the financial weakness could persist as the debt crisis drags on.  For example, SocGen said growth in Europe had slowed "significantly" in the 2nd quarter, crimping some of its profitability from retail operations, while its international retail banking revenue fell to €1.24 billion euros, a drop of nearly 2%. The bank also faces financial challenges with its Greek subsidiary, Geniki Bank.  The debt crisis also is wreaking havoc on their investment banking business, as customers remain reticent given the precarious situation in Europe and policymakers struggle to find "durable solutions to the sovereign debt crisis," the bank said. Corporate and investment banking revenue in the quarter just ended fell more than 30%. Finally, Société Générale noted deteriorating conditions in France, which has the largest economy in the euro zone after that of Germany.  So far, France has avoided the worst of the debt crisis that first engulfed Greece and now Spain, but its economy has been softening, and the government is likely to face a rising bill as the costs of cleaning up the crisis grow. For further details, go to:  [Dealbook, 8/1/12].