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| French trader 'concealed deals' | French trader 'concealed deals' |
| (9 minutes later) | |
| The trader at the centre of an investigation into losses at Societe Generale has admitted to hiding deals, according to the Paris prosecutor. | The trader at the centre of an investigation into losses at Societe Generale has admitted to hiding deals, according to the Paris prosecutor. |
| Jean-Claude Marin is going to ask that Jerome Kerviel is placed in provisional detention, says French news agency AFP. | |
| Lawyers for Mr Kerviel said their client had "committed no dishonest act". | Lawyers for Mr Kerviel said their client had "committed no dishonest act". |
| Last week, Societe Generale revealed a loss of 4.9bn euros ($7.1bn; £3.7bn), blamed on Mr Kerviel. | Last week, Societe Generale revealed a loss of 4.9bn euros ($7.1bn; £3.7bn), blamed on Mr Kerviel. |
| Societe Generale says he gambled about 50bn euros ($73bn; £37bn) before being uncovered. | Societe Generale says he gambled about 50bn euros ($73bn; £37bn) before being uncovered. |
| The bank said that Mr Kerviel, 31, appeared to have been operating alone. | The bank said that Mr Kerviel, 31, appeared to have been operating alone. |
| When the bank reversed all the deals he had allegedly made, it was hit with a loss of 4.9bn euros. | When the bank reversed all the deals he had allegedly made, it was hit with a loss of 4.9bn euros. |
| 'Great pretender' | 'Great pretender' |
| "He did not siphon off a single cent, and did not profit in any way" from the bank's assets, Mr Kerviel's lawyers told AFP. | "He did not siphon off a single cent, and did not profit in any way" from the bank's assets, Mr Kerviel's lawyers told AFP. |
| They also accused the bank of trying to "create a smokescreen which would divert public attention from losses that were significantly more substantial than those it accumulated in recent months". | They also accused the bank of trying to "create a smokescreen which would divert public attention from losses that were significantly more substantial than those it accumulated in recent months". |
| But the bank says that it is the victim. | But the bank says that it is the victim. |
| Speaking on French radio, the Chief Executive of Societe Generale, Daniel Bouton said:: "This fraud has been committed by a great pretender, who has succeeded in navigating the many sophisticated control systems that we have, to permanently conceal what he was doing, while also going about his normal activities." | Speaking on French radio, the Chief Executive of Societe Generale, Daniel Bouton said:: "This fraud has been committed by a great pretender, who has succeeded in navigating the many sophisticated control systems that we have, to permanently conceal what he was doing, while also going about his normal activities." |
| Police have been given a further 24 hours to question Mr Kerviel. They say he is co-operating with their inquiry. | Police have been given a further 24 hours to question Mr Kerviel. They say he is co-operating with their inquiry. |
| Mr Kerviel handed himself in on Saturday, two days after the scandal was revealed publicly. No charges have yet been brought against him. | Mr Kerviel handed himself in on Saturday, two days after the scandal was revealed publicly. No charges have yet been brought against him. |
| In my opinion, it is his bosses and employers who should be looked into Sylviane Le GoffAunt of Jerome Kerviel By early afternoon on Monday police must either free him or present him to a judge for the opening of a full judicial investigation into charges of fraud. | In my opinion, it is his bosses and employers who should be looked into Sylviane Le GoffAunt of Jerome Kerviel By early afternoon on Monday police must either free him or present him to a judge for the opening of a full judicial investigation into charges of fraud. |
| "The detention is going very well," said Jean Michel Aldebert, head of the financial section of the Paris prosecutor's office. "He is talking about the things he has been accused of." | "The detention is going very well," said Jean Michel Aldebert, head of the financial section of the Paris prosecutor's office. "He is talking about the things he has been accused of." |
| Societe Generale on Sunday accused its trader of using "fraudulent methods", and concocting "fictitious operations" to prevent detection. | Societe Generale on Sunday accused its trader of using "fraudulent methods", and concocting "fictitious operations" to prevent detection. |
| It said his background in trader oversight enabled him to fool those supposed to monitor traders' activities. | It said his background in trader oversight enabled him to fool those supposed to monitor traders' activities. |
| He had committed some 50bn euros to purchases of "futures" portfolios - effectively betting on the future direction of the stock market - the bank said. | He had committed some 50bn euros to purchases of "futures" portfolios - effectively betting on the future direction of the stock market - the bank said. |
| Journalists have yet to get a glimpse of Mr Kerviel | Journalists have yet to get a glimpse of Mr Kerviel |
| That was more than the bank's own worth - about 35bn euros - and about the size of France's entire annual budget deficit. | That was more than the bank's own worth - about 35bn euros - and about the size of France's entire annual budget deficit. |
| Traders are supposed to balance each purchase with a sale, but Mr Kerviel allegedly made up fictitious sales, leaving the bank massively overcommitted. | Traders are supposed to balance each purchase with a sale, but Mr Kerviel allegedly made up fictitious sales, leaving the bank massively overcommitted. |
| Societe Generale said the deals, once discovered last weekend, had to be "undone as soon as possible, due to the risks tied to the amount", even though "market conditions were very unfavourable". | Societe Generale said the deals, once discovered last weekend, had to be "undone as soon as possible, due to the risks tied to the amount", even though "market conditions were very unfavourable". |
| Prices were falling on stock markets around the world, meaning when the positions were closed, the bank showed a 4.9bn euro loss. | Prices were falling on stock markets around the world, meaning when the positions were closed, the bank showed a 4.9bn euro loss. |
| The bank said its traders worked on the matter for three days, finally closing the positions on 23 January. | The bank said its traders worked on the matter for three days, finally closing the positions on 23 January. |
| System 'haywire' | System 'haywire' |
| Analysts have suggested that Societe Generale's massive sell-off may have played a part in sparking the huge losses suffered by world stock markets early last week. | Analysts have suggested that Societe Generale's massive sell-off may have played a part in sparking the huge losses suffered by world stock markets early last week. |
| The bank though denies that. | The bank though denies that. |
| "It is not Societe Generale's responsibility if the Asian markets crashed on Monday morning after an American insurance company announced having problems on the previous Friday afternoon, " said Mr Bouton. | "It is not Societe Generale's responsibility if the Asian markets crashed on Monday morning after an American insurance company announced having problems on the previous Friday afternoon, " said Mr Bouton. |
| 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 |
| Two legal complaints of fraud have been lodged against Mr Kerviel - one from a group of small Societe Generale shareholders, and the other from the bank itself. | Two legal complaints of fraud have been lodged against Mr Kerviel - one from a group of small Societe Generale shareholders, and the other from the bank itself. |
| But numerous analysts have queried how a middle-ranking employee could have been single-handedly behind such a colossal loss, reports the BBC's Hugh Schofield in Paris. The case has stirred debate in France about the merits of speculative financial markets. | But numerous analysts have queried how a middle-ranking employee could have been single-handedly behind such a colossal loss, reports the BBC's Hugh Schofield in Paris. The case has stirred debate in France about the merits of speculative financial markets. |
| "We must stop with this system that has gone haywire and that has lost track of its aim," said President Nicolas Sarkozy, speaking on a trip to India. | "We must stop with this system that has gone haywire and that has lost track of its aim," said President Nicolas Sarkozy, speaking on a trip to India. |
| "It appears to be time to... inject a bit of common sense into all these systems," he added. | "It appears to be time to... inject a bit of common sense into all these systems," he added. |
| 'Shy' | 'Shy' |
| Mr Kerviel disappeared after the news of the losses Societe Generale had incurred broke on Thursday, fuelling speculation he had fled. | Mr Kerviel disappeared after the news of the losses Societe Generale had incurred broke on Thursday, fuelling speculation he had fled. |
| But it is now reported that he was staying with his older brother, Olivier. Mr Aldebert said he had handed himself in voluntarily. | But it is now reported that he was staying with his older brother, Olivier. Mr Aldebert said he had handed himself in voluntarily. |
| Police searched Mr Kerviel's Paris flat on Friday and also visited the Societe Generale headquarters, where he worked, leaving with documents and computer disks. | Police searched Mr Kerviel's Paris flat on Friday and also visited the Societe Generale headquarters, where he worked, leaving with documents and computer disks. |
| Meanwhile, Mr Kerviel's acquaintances have described a shy, considerate person who liked judo and sailing. | Meanwhile, Mr Kerviel's acquaintances have described a shy, considerate person who liked judo and sailing. |
| An aunt told French news agency AFP her nephew "must have been manipulated". | An aunt told French news agency AFP her nephew "must have been manipulated". |
| "They are an honest family, who have nothing to reproach themselves for," Sylviane Le Goff said. | "They are an honest family, who have nothing to reproach themselves for," Sylviane Le Goff said. |
| "The young man has always been serious, reserved. In my opinion, it is his bosses and employers who should be looked into," she said. | "The young man has always been serious, reserved. In my opinion, it is his bosses and employers who should be looked into," she said. |
| She added that her sister had gone to Paris on Thursday to try and "comfort" her son. | She added that her sister had gone to Paris on Thursday to try and "comfort" her son. |