Skip to main content

The Globe and Mail

SocGen fined $6.4-million for Kerviel trading scandal

Société Générale SA, the French bank stung by a record trading loss, was fined €4-million ($6.4-million) by the country's Banking Commission for failing to comply with rules on internal controls. The Paris-based company's internal checks showed "serious shortcomings, going far beyond simple repeated individual errors," the commission said in an e-mailed statement. The fact that management was unaware of these shortcomings can't be used as an excuse for failing to meet bank regulations, it said. A report commissioned by Société Générale found that trader Jérôme Kerviel was able to build up €50-billion in unauthorized futures positions at France's second-biggest bank because of "fragmented" internal controls. Unwinding those positions cost a record €4.9-billion, a loss the bank blamed on the former trader. GLE (Paris) fell €1.41 to €54.81.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨