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SocGen rogue trader is released | |
(about 5 hours later) | |
The former Societe Generale trader accused of losing 5bn euros ($7bn; £3.5bn) has been released from custody. | |
Jerome Kerviel spent five weeks in jail before Tuesday's court decision to release him under strict conditions. | |
The investigation into SocGen's huge losses continues. The bank says Mr Kerviel used inside knowledge to cover up unauthorised trades. | |
But an internal report by the bank also said that SocGen's oversight of traders was not vigilant enough. | |
Strict conditions | Strict conditions |
Societe Generale announced the trading losses in late January. Shortly afterwards, Mr Kerviel turned himself in to police. | |
Prosecutors accused him of breach of trust, fabricating documents and illegally accessing computers. | Prosecutors accused him of breach of trust, fabricating documents and illegally accessing computers. |
Last month, they won a court order to have Mr Kerviel jailed, arguing that he might undermine the investigation by talking to others caught up in the probe. | Last month, they won a court order to have Mr Kerviel jailed, arguing that he might undermine the investigation by talking to others caught up in the probe. |
A court on Tuesday reversed that ruling, but strict conditions remain on Mr Kerviel's freedom. | A court on Tuesday reversed that ruling, but strict conditions remain on Mr Kerviel's freedom. |
He is not allowed to be active in the financial markets or leave the Paris region without permission. | He is not allowed to be active in the financial markets or leave the Paris region without permission. |
He cannot meet anyone connected with the investigation and has to present himself weekly at a police station. | He cannot meet anyone connected with the investigation and has to present himself weekly at a police station. |
Internal investigation | Internal investigation |
SocGen's internal investigation concluded that Mr Kerviel had started making unauthorised trades in 2005, initially for small amounts. | SocGen's internal investigation concluded that Mr Kerviel had started making unauthorised trades in 2005, initially for small amounts. |
But by the time SocGen uncovered the trades in January, the trading position had hit 49bn euros. | But by the time SocGen uncovered the trades in January, the trading position had hit 49bn euros. |
SocGen was forced to reverse those trades in unfavourable market conditions, resulting in huge losses. | SocGen was forced to reverse those trades in unfavourable market conditions, resulting in huge losses. |
The report also said that Mr Kerviel acted alone. | The report also said that Mr Kerviel acted alone. |