Societe Generale To Seek Legal Action For Trader

Law360, New York (January 24, 2008, 12:00 AM EST) -- Societe Generale Group will take legal action against the rogue trader whose fraud cost the French bank €4.9 billion ($7.14 billion) and will launch a €5.5 billion capital increase underwritten by Morgan Stanley and J.P. Morgan to offset the loss and maintain its external ratings.

Societe General said Thursday that it had been the victim of a serious internal fraud perpetrated by a trader in the bank's corporate and investment banking division. The trader had been responsible for futures hedging on European equity market indexes, the...
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