The Lesson of Societe Generale

With the bank's vulnerabilities exposed, technologies for risk and fraud management just got a lot more popular
Paris prosecutor Jean-Claude Marin (center) speaks during a press conference Jan. 28 after a Societe Generale statement the day before outlined the bank's allegations against Jerome Kerviel. Jacques Demarthon/AFP/Getty Images

The investigation into how Jerome Kerviel, Société Générale (SOGN.PA)'s rogue trader, managed to lose $7.2 billion before being caught is beginning to reveal how he sidestepped the bank's many layers of fraud detection—and how cutting-edge technologies might have plugged some of the holes the Frenchman exploited.

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