Pressure on for SocGen Heads to Roll

Bank finally calls in auditors to probe $7B scandal
By Rob Quinn,  Newser Staff
Posted Jan 30, 2008 6:38 AM CST
In this photo of an electoral leaflet for the 2001 municipal elections in Pont l'Abbe, western France, French trader Jerome Kerviel is seen, where he is listed as a candidate for the town's council. Kerviel,...   (Associated Press)
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(Newser) – Independent auditors have been called in to examine events leading up to Société Générale's $7 billion trading scandal—and the jobs of some top executives are on the line, reports the Financial Times. The bank's head of corporate and investment banking will have to answer tough questions about why nothing was done about rogue trader Jérôme Kerviel when a European exchange raised questions about his work back in November.

“Our previous assumptions have to be questioned,” said one director. Chairman Daniel Bouton helped put together a rescue package after the huge losses from Kerviel's trades brought the banking Goliath to its knees—but directors admit he may also have to go as political pressure mounts and other banks consider a SocGen takeover. The pressure for a key firing is "very, very strong,” a director said. “The politicians want a head to roll."