Friday, 25 January 2008

Societe General: Rogue Trader

"The fugitive trader behind the biggest fraud investigation in banking history is a 31-year old Frenchman called Jerome Kerviel."

"Kerviel was today alleged to have carried out a £3.6 billion banking fraud."

"The incredible sum lost by Société Générale, France's second biggest bank, dwarves the £827 million lost by British dealer Nick Leeson, who sank Barings Bank in 1995."

"Kerviel, who was responsible for plain vanilla futures hedging on European equity market indices, was today still at liberty."

"One close colleague of Mr Kerviel at SocGen told the Daily Telegraph: "We don't know where he is. He is not here, but we're not allowed to say anything." "

"And - despite the extraordinary sums involved - it emerged that news of Kerviel's alleged operation was covered up for a full three days after he was "grilled for six hours" by his bosses on Saturday night."

"After discovering inconsistencies in the the financial data in the bank's trading accounts on Saturday, the problem was tracked down to Kerviel."

"The bank liquidated the positions in the first three days of this week while the markets were tumbling."

"Admitting that the man had not yet even been fired, the beleaguered Société Générale Chairman and Chief Executive Daniel Bouton said: "If he escapes he will be found - there is no doubt about it." "

Looks like Societe Generale have found the perfect person to disguise their dirty investment made in sub prime. Finally they asked service from Hollywood for hiding a problem that seems to be mission impossible....

Source: Telegraph

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