SocGen Had Been Warned About Kerviel

Jérôme Kerviel's activities had raised red flags within Société Générale months before the trader was charged. The French bank may not survive the blow

Shares in Société Générale (SOGN.PA) swooned nearly 4% in Paris trading on Jan. 28, to €71 ($104.35), as speculation mounted over a possible breakup of the battered French bank, while the Paris prosecutor cited evidence that SocGen had received multiple warnings about unauthorized transactions by rogue trader Jérôme Kerviel that ultimately cost the bank $7.1 billion (BusinessWeek.com, 1/24/08).

To continue reading this article you must be a Bloomberg Professional Service Subscriber.