French Regulator Socks SocGen With $6M Fine

Law360, New York (July 7, 2008, 12:00 AM EDT) -- France's banking regulator has fined Societe Generale $6.3 million for its failure to maintain internal follow-up and control procedures that could have stopped a rogue investor from allegedly making fraudulent trades.

Banque de France's Commission Bancaire said on Friday that it had found “serious shortcomings” in SocGen's internal controls, which led to the $7 billion-plus in losses earlier this year. SocGen will have to shell out €4 million as penalty.

The regulator also issued France's second-biggest bank a formal warning, stating that failures in the hierarchical...
To view the full article, register now.