French minister blames control failures at SocGen

The French finance minister said internal controls failures had contributed
to the scandal.

The SEC has also opened preliminary investigations linked to the trading
scandal at Societe Generale, it emerged today.

‘Clearly, some mechanisms did not work,’ French Finance Minister Christine
Lagarde told a French parliamentary committee today.

Delivering the first government report into the rogue trader debacle, Lagarde
warned that tougher controls and penalties might be needed.

‘Very clearly, certain mechanisms of internal controls of Société Générale
did not function, and those that functioned were not always followed by
appropriate modifications,’ Lagarde said.

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