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Rogue trader bank fined for carelessness
Azerbaijan News.Net
Saturday 5th July, 2008
France's central bank has fined Societe Generale $6.3 million for shortcomings in its internal controls.
The Bank of France's banking commission also issued a formal warning to SocGen, after its US$7.8 billion in trading losses.
The commission's ruling noted significant weaknesses in Societe Generale's computer security systems and said that traders and those meant to monitor them were not sufficiently independent of each other.
Societe Generale has accused futures trader Jerome Kerviel of betting tens of billions of the bank's money without permission, which led to massive losses announced in January.
Kerviel has been charged with forgery, breach of trust and unauthorized computer use in a preliminary investigation.
He has claimed his supervisors were aware of his trades and did not stop them while he was making money for the bank.
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Comments on this story
Anonymous
07-05-08, 06:04 PM |
Rogue trader bank fined for carelessness
The bank has to take some responsibility for this, and in particular this guy’s supervisors. If they allowed him to get away with it they are partly to blame. There should be systems in place to prevent fraud. There is too much of it and there have been too many instances like this over the years. Where are the bank’s auditors?
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