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Police search rogue trader's flat | Police search rogue trader's flat |
(1 day later) | |
Police have searched the flat of Jerome Kerviel, the man said to be the rogue trader who lost 4.9bn euros ($7.1bn; £3.7bn) at Societe Generale. | Police have searched the flat of Jerome Kerviel, the man said to be the rogue trader who lost 4.9bn euros ($7.1bn; £3.7bn) at Societe Generale. |
Officers spent two hours at the address in the Paris suburb of Neuilly before leaving with a number of briefcases. | Officers spent two hours at the address in the Paris suburb of Neuilly before leaving with a number of briefcases. |
While Mr Kerviel's exact whereabouts is now unknown, his family has leapt to his defence, insisting he is innocent. | While Mr Kerviel's exact whereabouts is now unknown, his family has leapt to his defence, insisting he is innocent. |
"He is being made to carry the blame and is not the guilty one," one unnamed relative told the Reuters news agency. | "He is being made to carry the blame and is not the guilty one," one unnamed relative told the Reuters news agency. |
'Deep regrets' | 'Deep regrets' |
While Societe Generale has yet to officially name Mr Kerviel, it has filed a legal complaint against the trader, accusing him of defrauding the bank by making unauthorised financial trades. | |
It is difficult...to imagine how one person alone could, in a relatively short period of time, cause such considerable losses Francois Fillon, French Prime Minister Did rogue trader cause market meltdown? | It is difficult...to imagine how one person alone could, in a relatively short period of time, cause such considerable losses Francois Fillon, French Prime Minister Did rogue trader cause market meltdown? |
The bank's chairman Daniel Bouton said the fraud was a "one-off" and denied it was a trading or risk-management fault. | The bank's chairman Daniel Bouton said the fraud was a "one-off" and denied it was a trading or risk-management fault. |
Mr Bouton also took out full-page advertisements in French newspapers on Friday, in which he asked the bank's shareholders to accept his "apologies and deep regrets". | |
"I understand your disappointment, your anger," he said. | "I understand your disappointment, your anger," he said. |
"This situation is perfectly unacceptable." | "This situation is perfectly unacceptable." |
'Who was funding?' | 'Who was funding?' |
As the recriminations continue, both Societe Generale shareholders, analysts and the French government have questioned how the rogue trader was able to operate alone. | As the recriminations continue, both Societe Generale shareholders, analysts and the French government have questioned how the rogue trader was able to operate alone. |
Jerome Kerviel, the reported rogue trader | Jerome Kerviel, the reported rogue trader |
"It is difficult...to imagine how one person alone could, in a relatively short period of time, cause such considerable losses," said French Prime Minister Francois Fillon. | "It is difficult...to imagine how one person alone could, in a relatively short period of time, cause such considerable losses," said French Prime Minister Francois Fillon. |
"They are saying all of this was cunningly concealed, but somebody must have been funding the collateral or whatever was needed to sustain those positions," said Derek Chambers at Standard & Poor's Equity Research. | "They are saying all of this was cunningly concealed, but somebody must have been funding the collateral or whatever was needed to sustain those positions," said Derek Chambers at Standard & Poor's Equity Research. |
The French government is also angry that Societe Generale did not inform it immediately after the losses were discovered. | The French government is also angry that Societe Generale did not inform it immediately after the losses were discovered. |
French President Nicolas Sarkozy called the events at Societe Generale a "large-scale internal fraud", but added that the losses "do not affect the solidity and reliability of the French system". | French President Nicolas Sarkozy called the events at Societe Generale a "large-scale internal fraud", but added that the losses "do not affect the solidity and reliability of the French system". |
'Personal gain?' | 'Personal gain?' |
Societe Generale said the fraud was based on simple transactions, but concealed by "sophisticated and varied techniques". | Societe Generale said the fraud was based on simple transactions, but concealed by "sophisticated and varied techniques". |
SOCIETE GENERALE IN FIGURES Founded in 1864467bn euros in assets under management (as of June 2007)22.5m customers worldwide120,000 employees in 77 countries Societe Generale share price | SOCIETE GENERALE IN FIGURES Founded in 1864467bn euros in assets under management (as of June 2007)22.5m customers worldwide120,000 employees in 77 countries Societe Generale share price |
According to reports, Mr Kerviel worked at the bank's Delta One products team in Paris. | According to reports, Mr Kerviel worked at the bank's Delta One products team in Paris. |
He was responsible for betting on the markets' future performance, bank executives said. | He was responsible for betting on the markets' future performance, bank executives said. |
Societe Generale said the trader had taken what it called "massive fraudulent directional positions in 2007 and 2008 beyond his limited authority". | Societe Generale said the trader had taken what it called "massive fraudulent directional positions in 2007 and 2008 beyond his limited authority". |
Executives said the trader may not have sought personal gain from the fraudulent deals. | Executives said the trader may not have sought personal gain from the fraudulent deals. |
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