SocGen failed to follow up 75 warnings

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

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

Rules widely flouted at SocGen

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