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SocGen's controls 'lacked depth' | |
(about 1 hour later) | |
An internal investigation into billions of euros of losses at Societe Generale has found that controls at the French bank "lacked depth". | |
The results of the investigation also show that rogue trades were first made back in 2005. | |
The bank set up an independent committee to investigate the 4.9bn euros ($7bn; £3.7bn) in losses. | |
The bank blames former employee, Jerome Kerviel, for the losses, saying he covered up unauthorised trades. | |
But the report said the bank's internal controls failed to pick up his activities. | |
It also found no evidence that more than one trader was involved. | |
Profits plunge | |
The SocGen report also gave details of Mr Kerviel's bonus. | |
It said in 2006 he received 60,000 euros and asked for 600,000 euros in 2007, but instead received half that. | |
Mr Kerviel is under "provisional detention" while the case is being investigated. | Mr Kerviel is under "provisional detention" while the case is being investigated. |
He is accused of breach of trust, falsifying documents and breaching computer security. | He is accused of breach of trust, falsifying documents and breaching computer security. |
A court ruled that he should be detained because of the "necessities of the investigation" and the risk that he could flee the country. | A court ruled that he should be detained because of the "necessities of the investigation" and the risk that he could flee the country. |
Mr Kerviel has said that he never considered "running away" after the bank blamed him for the huge trading losses. | |
On Thursday Societe Generale reports results for 2007. | |
Last month it forecast an 82% slump in net profit to 947m euros. |