Saturday, January 26, 2008

Lax Controls Costs French Bank $7 B, Lone Trader Blamed

A futures trader at the French bank Societe Generale allegedly bypassed established computer control systems to generate fictitious financial transactions that caused 4.9 billion Euros (US $7.2 billion) in losses for the bank. The bank has lodged a complaint against Jerome Kerviel with French prosecutors. The complaint against him alleges falsification of banking records, fraudulent use of the falsified records, and computer fraud...

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