Friday 25th January 2008
Legal action is planned by French bank Societe Generale in light of the "significant loss" caused by the fraudulent activities of an employee, it has been revealed.
The Paris-based financial services provider issued a statement following the discovery of the losses.
Chairman Daniel Bouton explains the statement: "All possible measures were taken as quickly as possible to limit its impact.
"Control procedures have been revised and reinforced to avoid any reoccurrence of further similar risk."
In echoes of the Barings Bank collapse brought about by Nick Leeson in 1995, the Associated Press reports that Jerome Kerviel cost Societe Generale $7.2 billion (£3.7 billion).
He is believed to have spent the money on unauthorised stock transactions and created fraudulent records of profits to give the impression that no losses had been incurred.
A previous position at the bank gave him an inside knowledge of how to avoid detection - as he had been responsible for preventing such activity in the past.
©
Everything on preparing your finances for your children's futures. From Child Trust Funds through to tax planning. Request your FREE brochures here.
