Société Générale failed to follow up 75 warnings on the rogue trading by Jérôme Kerviel which led to a trading loss of €4.9bn ($7.2bn), a report written by an independent three-person board member committee has revealed.

The report said Kerviel acted alone and that not all of his trading positions had been identified, according to Bloomberg.com.

The failure to identify the fraud resulted from ‘the efficiency and variety of techniques of dissimulation used by the fraudster’ and ‘because the operators didn't systematically deepen their verifications’, the report said. It also found the controls which could have identified the fraud were lacking.

The report added that the bank had tightened controls to prevent a repeat of Kerviel's unauthorised trading, but refrained from drawing any conclusions regarding the responsibility of managers, except for saying that compliance officers rarely went beyond established routine checks.

Further reading:

SocGen's broking arm began watching rogue trader last autumn

Rules widely flouted at SocGen