French regulator slams SocGen’s monitoring

France’s accounting regulator, the Haut Conseil Du Commissariat aux Comptes,
has criticised the quality of Société Générale’s monitoring systems, saying the
bank should ‘improve’ its methods.

Philippe Séguin, president of the regulator, released a report stating that
there was ‘room for improvement’ in SocGen’s supervisory commission, which
monitors national banks.

The bank is faced with overcoming its losses after a £3.7bn fraud at the
hands of a junior trader who appears to have taken advantage of poor internal

The bank maintained the rogue trader, Jérôme Kerviel, acted alone by using
stolen access codes and falsifying confirmatory trading emails.

‘It will require an effort’ to improve banking controls, Séguin said.

He also acknowledged the challenge is ‘extremely complex, because we are
discovering how far bank fraud can go.’

‘This fell on us just as it fell on Singapore and England a few years’ ago.
We are not alone in facing this challenge,’ he said, in reference to the UK’s
rogue trader Nick Leeson, who lost $1.5 billion at Barings Bank, resulting in
collapse in 1995.

Further reading:

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SocGen was alerted to junior trader’s positions last

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