Lax Oversight Enabled Fraud At SocGen: Report

Law360, New York (February 21, 2008, 12:00 AM EST) -- Weaknesses in supervisory procedures at Societe Generale allowed Jerome Kerviel to make fraudulent trades for the French bank for several years, ultimately losing more than $7 billion, the bank said Wednesday.

The finding was contained in an interim report published by a special committee appointed by the bank’s board last month to determine the size and cause of Kerviel’s unprecedented losses.

The report revealed that Kerviel’s fraud dated back to 2005, but although the bank’s oversight controls were “carried out in accordance with procedures,” it still...
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