Accountants could shed new light on Kerviel’s case

Jérôme Kerviel, the Société
Générale
trader accused for the bank’s record trading
loss in January, met yesterday with
Ernst
& Young
and
Deloitte
Touche Tohmatsu
to find out about alerts they may have sent to the bank.

The meeting centered around what the auditors knew and told the bank about
its
exposure to what became €50bn (£40bn) in unauthorised futures positions which
cost Société Générale’s €4.9bn, the International Herald Tribune
reports.

The bank’s claims it was unaware of Kerviel’s activities were ‘a smoke
screen’,
Bernard Benaiem, one of Kerviel’s lawyers, said before the meeting at the
offices of
judges leading the investigation. ‘E-mail exchanges from their auditors kept
them
aware that the trades didn’t exist,’ he said.

Kerviel’s lawyers also planned to inquire about the French banking
commission’s
findings in the case. The commission fined Société Générale €4m in July for
failing
to comply with rules on internal controls. Kerviel’s legal team has just gained

access to the report, which was not made public.

Further Reading:

Read
the International Herald Tribune story

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