EU - official says SocGen's rogue trading scandal 'inexcusable'

8th February 2008, Comments 0 comments

Societe Generale's failure to uncover a rogue trading scandal earlier is "inexcusable," the European Union's top financial services official said

   BRUSSELS, Feb 8, 2008 - Societe Generale's failure to uncover a rogue
trading scandal earlier is "inexcusable," the European Union's top financial
services official said in a speech released Thursday, accusing the bank of
"abject carelessness."
   "It is inexcusable that the entire market value of a financial institution
can be placed at risk by such abject carelessness on the part of a leading
European bank," EU Services Commissioner Charlie McCreevy said.
   In a speech delivered Wednesday evening in London and published Thursday in
Brussels, McCreevy said it was "amazing" that "a top class institution has
once again been exposed as having fundamental control weaknesses and having
failed to learn some of the lessons from previous rogue trader experiences."
   Societe Generale revealed on January 24 it had lost a staggering 4.8
billion euros (7.0 billion dollars) in the biggest rogue trading scandal in
history, for which 31-year-old junior trader Jerome Kerviel has been charged.
   Takeover talk is now swirling around the bank, with France's top two
lenders, Credit Agricole and BNP Paribas, reportedly eyeing their embattled
rival.
   The French finance ministry has said that a failure of Societe Generale's
internal controls helped contribute to the scandal and Kerviel told AFP in a
recent interview that he was only partly to blame.

AFP 

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