SocGen’s broking arm began watching rogue trader last autumn

The trades of the junior trader who caused the massive losses at Société
Générale were under scrutiny by the bank’s broking arm, Fimat, last autumn.

But executives who raised questions about Jérôme Kerviel’s payments to Moussa
Bakir – an employee at Fimat – could find nothing conclusive and the inquiry was
not prioritised.

The internal investigation was still under way when SocGen discovered the
Kerviel’s trades were discovered.

The news further embarrasses the bank, which has been accused of weaknesses
in its control system by the French Banking Commission.

Further reading:

French minister blames control failures at SocGen

French regulator slams SocGen’s monitoring

hired by SocGen Special Committee

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