BusinessCompany NewsIndependent auditors to investigate SocGen

Independent auditors to investigate SocGen

SocGen has now admitted it received letters from Eurex at the end of last year, questioning Jérôme Kerviel's strategies which left the bank exposed

External auditors are set to conduct a rigorous review of the affairs that
led to the £4bn fraud at troubled Société Générale at the request of its
directors.

The bank has now also backtracked on earlier statements that it only knew of
rogue trader Jérôme Kerviel’s risky positions 11 days ago, after Eurex revealed
it alerted the bank as early as November.

SocGen has now admitted it received letters from Eurex at the end of last
year, questioning Jérôme Kerviel’s strategies which left the bank exposed. It
also said it responded to the questions raised by the derivatives exchange.

The latest admissions come ahead of a meeting of the board today where the
fate of chairman Daniel Bouton and head of corporate and investment banking,
Jean-Pierre Mustier are expected to be decided.

The bank’s integrity and controls systems were further questioned yesterday
after Eurex, Europe’s leading derivatives exchange, revealed that it had alerted
the bank to the large positions accumulated by the junior rogue trader as early
as November last year.

Further reading:

Societe
Generale Board Faces Mounting Pressure to Drop Bouton

Societe
Generale to call in independent auditors – report

Investigation at SocGen ‘to take months’

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