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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.

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