Second SocGen employee arrested in rogue trading scandal
Wednesday, 12 Mar 2008 14:29
Societe Generale suffered huge losses at a result of alleged rogue trading
A second Societe Generale employee has been arrested as part of a police investigation into alleged rogue trading at the French bank.
The Paris prosecutor's office confirmed today that a trader from a subsidiary of Societe Generale was being held.
In January France's second largest bank announced 4.9 billion euros (£3.7 billion) of losses which was blamed of rogue trading carried out by one of its employees, Jerome Kerviel.
Mr Kerviel, 31, a junior trader at the bank, is currently being held in a Paris prison as the police investigate the allegations.
A spokesperson for Societe General confirmed that police had searched the bank's trading room today and that one person was being held for questioning.
Mr Kerviel is being investigated for breach of trust, computer abuse and falsification. He is due to appear in court on Friday in a bid to secure temporary release from prison.
On Tuesday, the bank announced that it had managed to raise 5.5 billion euros (£4.2 billion) by selling shares to investors at a reduced price.