This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7214716.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| French bank 'had trader warning' | French bank 'had trader warning' |
| (about 10 hours later) | |
| French stock market officials warned Societe Generale about alleged rogue trader Jerome Kerviel late last year, a Paris prosecutor has said. | French stock market officials warned Societe Generale about alleged rogue trader Jerome Kerviel late last year, a Paris prosecutor has said. |
| With Mr Kerviel now released on bail, the prosecutor's comments increase the pressure on the bank to explain why his trades were not discovered earlier. | With Mr Kerviel now released on bail, the prosecutor's comments increase the pressure on the bank to explain why his trades were not discovered earlier. |
| Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security. | Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security. |
| Societe Generale says his actions cost it 4.9bn euros ($7bn; £3.7bn). | Societe Generale says his actions cost it 4.9bn euros ($7bn; £3.7bn). |
| 'Crisis situation' | 'Crisis situation' |
| The bank, which says it only discovered Mr Kerviel's unauthorised trades 10 days ago, had been pressing for Mr Kerviel to face the more serious charge of fraud. | The bank, which says it only discovered Mr Kerviel's unauthorised trades 10 days ago, had been pressing for Mr Kerviel to face the more serious charge of fraud. |
| Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it Defence lawyer Christian Charriere-Bournazel | Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it Defence lawyer Christian Charriere-Bournazel |
| His lawyer, Elisabeth Meyer, on Monday called the judges' decision not to press for fraud charges a "great victory". | His lawyer, Elisabeth Meyer, on Monday called the judges' decision not to press for fraud charges a "great victory". |
| As police investigations into Mr Kerviel's actions continue, French politicians are increasing the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton. | As police investigations into Mr Kerviel's actions continue, French politicians are increasing the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton. |
| "Societe Generale is in a crisis situation," said Economy Minister Christine Lagarde in an interview on French television. | "Societe Generale is in a crisis situation," said Economy Minister Christine Lagarde in an interview on French television. |
| "In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain." | "In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain." |
| French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the scandal. | French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the scandal. |
| 'Invented deals' | 'Invented deals' |
| Societe Generale says Mr Kerviel had a position, or a bet, worth about 50bn euros on the future direction of European shares. | Societe Generale says Mr Kerviel had a position, or a bet, worth about 50bn euros on the future direction of European shares. |
| SOCIETE GENERALE IN FIGURES Founded in 1864467bn euros in assets under management (as of June 2007)22.5 million 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)22.5 million customers worldwide120,000 employees in 77 countries Societe Generale share price |
| That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit. | That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit. |
| To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros. | To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros. |
| Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities. | Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities. |
| It says Mr Kerviel invented deals that, on paper, balanced out his bets. | It says Mr Kerviel invented deals that, on paper, balanced out his bets. |
| 'No evidence' | 'No evidence' |
| Mr Kerviel's other lawyer, Christian Charriere-Bournazel, said his client had committed no fraud, adding that Societe Generale's chief executive Daniel Bouton had no evidence to back up his allegations. | Mr Kerviel's other lawyer, Christian Charriere-Bournazel, said his client had committed no fraud, adding that Societe Generale's chief executive Daniel Bouton had no evidence to back up his allegations. |
| "The word fraud was used by Mr Bouton numerous times," he said. | "The word fraud was used by Mr Bouton numerous times," he said. |
| "Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it." | "Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it." |
| Under French law breach of trust carries a maximum sentence of three years in prison and a fine of 370,000 euros. | |
| While a formal investigation has started into Mr Kerviel's actions, this does not automatically guarantee that a trial will follow. | While a formal investigation has started into Mr Kerviel's actions, this does not automatically guarantee that a trial will follow. |