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Second SocGen employee detained | |
(about 2 hours later) | |
A second Societe Generale employee has been arrested as part of the probe into an alleged rogue trader scandal at the bank, judicial officials say. | |
The bank confirmed that police had searched its trading floor and held one person for questioning. | The bank confirmed that police had searched its trading floor and held one person for questioning. |
Societe Generale confirmed that the employee was a cash equities broker, but declined to name the individual. | |
Societe Generale announced 4.9bn euros ($7.6bn; £3.8bn) of losses, which it blames on its trader Jerome Kerviel. | |
'A scapegoat' | 'A scapegoat' |
This person has not been named, but is understood not to be the broker from the bank's Fimat unit - now called Newedge - and who was questioned and since named as a witness. | This person has not been named, but is understood not to be the broker from the bank's Fimat unit - now called Newedge - and who was questioned and since named as a witness. |
Mr Kerviel is being investigated for breach of trust, computer abuse and falsification. | Mr Kerviel is being investigated for breach of trust, computer abuse and falsification. |
He has previously said that he refused to be made "a scapegoat". | He has previously said that he refused to be made "a scapegoat". |
He is due to appear in court on Friday in an attempt to secure a temporary release while the investigation continues. | He is due to appear in court on Friday in an attempt to secure a temporary release while the investigation continues. |
Mr Kerviel has previously said that he was acting alone, but insisted that his bosses ignored his huge trades as long as he was making a profit. | Mr Kerviel has previously said that he was acting alone, but insisted that his bosses ignored his huge trades as long as he was making a profit. |
An internal inquiry at the bank found that it lacked controls that might have prevented the trader building up 50 billion euros of unsupervised bets on European share prices. | |
On Tuesday, Societe Generale announced that it had raised 5.5bn euros ($8.5bn; £4.2bn) by selling reduced-price shares to existing investors. | On Tuesday, Societe Generale announced that it had raised 5.5bn euros ($8.5bn; £4.2bn) by selling reduced-price shares to existing investors. |