Skip to: Content
Skip to: Site Navigation
Skip to: Search

September 5, 2008 6:13:59 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

SocGen Fraud Dominates Davos Talks

Posted Jan 24, 08 12:43 PM CST in Business,  World 

(Newser) – The revelation of enormous fraud by a rogue trader at Société Générale pushed other issues aside today at the World Economic Forum in Davos, Switzerland, CNBC reports. A panel on sovereign wealth funds turned into an impromptu discussion on repercussions of the $7.3 billion cover-up. The market turmoil that the SocGen scandal exacerbates led one delegate to say simply, "investment banks are horrendous."

Trust in the banking system might be the biggest casualty of the SocGen fraud, panelists agreed. "First you had subprime, then the bond insurers, and now this," said one banker. Also on hand was French Prime Minister François Fillon, who told delegates the scandal was "a very major case of fraud" but "not tied to the financial markets."

Sources CNBC, Reuters

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • SocGen CEO Resigns Over Rogue Trader

    Apr 18, 08 4:59 AM CDT
    SocGen CEO Resigns Over Rogue Trader The CEO of Société Générale will step down, at last bowing to pressure in the wake of the $7.8 billion rogue trading scandal. Although investors and politicians—including French President Nicolas Sarkozy—had demanded Daniel Bouton's resignation immediately after the revelation of Jérôme Kerviel's massive fraud, the bank had insisted he stay on to keep SocGen from collapse, reports the Financial Times. More »

  • SocGen: Lax Controls Led to $7.2B Fraud

    Feb 21, 08 7:50 AM CST
    SocGen: Lax Controls Led to $7.2B Fraud Rogue SocGen trader Jerome Kerviel, whose unauthorized deals led to a $7.2 billion loss for the French bank, continued his trading for more than a year after the first warning flag was raised in the department that was supposed to detect risky trading, reports the Wall Street Journal. Kerviel wrote at least seven bogus emails flagged for anomalies, and his trades tripped 24 alarms over a 14-month period beginning in July 2006, the bank admits in a report  released yesterday. More »

  • Credit Suisse Cuts Profits $1B on Trader Errors

    Feb 19, 08 6:58 AM CST
    Credit Suisse Cuts Profits $1B on Trader Errors Credit Suisse share prices plummeted 10% today after the bank announced that some traders had overvalued asset-backed securities, prompting the bank to take a $2.85 billion writedown and drop first-quarter profit projections by $1 billion, Bloomberg reports. Switzerland’s second-largest bank suspended the traders and said it would review 2007 earnings. Markets, already skeptical about the health of the financial industry, reacted negatively. More »

  • Lawyer: SocGen 'Condoned' Trader's Deals

    Feb 15, 08 11:26 AM CST
    Lawyer: SocGen 'Condoned' Trader's Deals The French trader who lost Société Générale $7.2 billion acted with the tacit support of the banking giant's management, which "condoned" his trades, Jérôme Kerviel's lawyer says. The assertion contradicts executives' claims that Kerviel acted alone. "Jérôme is a smart trader, but not smarter than any other guy at SocGen," the lawyer told CNN. More »

  • Trader's Alleged Accomplice Released

    Feb 9, 08 1:31 PM CST
    Trader's Alleged Accomplice Released Authorities today released a second suspect in the bank fraud case that cost Société Générale a dizzying $7.09 billion, the Wall Street Journal reports. But the suspect’s ex-colleague, Jerome Kerviel, remains jailed, as the bank and French officials insist he acted alone. Still, prosecutors labeled the second man an assisted witness, which makes him a witness without being charged, AFP explains. More »

Participants are seen in the main lobby prior to the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Amid a backdrop of concern over the health of the global...   (Associated Press)
Secretary General of the United Nations Ban Ki-moon speaks during a working session at the World Economic Forum in Davos, Switzerland, Thursday Jan. 24, 2008. Climate change topped the agenda as well...   (Associated Press)
Irish Rock Star Bono, left, and Nobel Peace laureate, former US Vice President Al Gore, shake hands after a plenary session on climate change during the Annual Meeting of the World Economic Forum, WEF,...   (Associated Press)
Participants, blurred by the effect of a zoom lens, are seen in the main lobby prior to the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Amid a backdrop...   (Associated Press)
Former British Prime Minister Tony Blair, left, is seen on a video screen during the opening session of the World Economic Forum in Davos, Switzerland, Wednesday Jan. 23, 2008. Seated center is United...   (Associated Press)
Norway's Minister of Finance Kristen Halvorsen speaks during a working session at the World Economic Forum in Davos, Switzerland, Thursday Jan. 24, 2008. Climate change topped the agenda as well as pursuing...   (Associated Press)
Former British Prime Minister Tony Blair, right, shares a word with Chairman of Kissinger Associated Henry Kissinger during a media conference at the World Economic Forum in Davos, Switzerland, Wednesday...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 3)

Tags

Société Générale  • bank fraud  • World Economic Forum  • Davos


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular


Other World Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »