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

December 2, 2008 9:48:43 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

For Reeling SocGen, the Taxman Cometh

Posted Feb 7, 08 10:07 AM CST in Business 

(Newser) – As if the $7.17 billion Societe Generale lost at the hands of rogue trader Jerome Kerviel wasn’t enough pain for the French banking giant, it’s now looking at losing another chunk of change—this time to the taxman, reports the Wall Street Journal. Investigators say Kerviel earned $2.1 billion for the bank in 2007, before his deals headed south.

Societe Generale has acknowledged Kerviel at one point showed a virtual $2.1 billion gain, but the fact the bank didn’t know it actually had $2.1 billion will raise more concerns over poor internal controls. Kerviel has claimed his bosses knew the trading was going on, allowing him to continue as long as he was making profitable deals.

Source Wall Street Journal

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 »

  • Rogue Trader to Sue SocGen

    Apr 3, 08 8:49 AM CDT
    Rogue Trader to Sue SocGen The rogue trader whose $7.8 billion in transactions nearly sank Société Générale has filed papers in preparation for a wrongful dismissal lawsuit, the Times of London reports. Jérôme Kerviel will claim the French bank has failed to prove he did anything wrong. He was released on bail last month after 31 days in jail on charges of breach of trust, fabricating documents, and illegally accessing computers. More »

  • SocGen Posts Record $4.9B Q4 Loss

    Feb 21, 08 9:54 AM CST
    SocGen Posts Record $4.9B Q4 Loss Societe Generale's annual profits plummeted a whopping 82% after a record $4.9 billion fourth quarter loss fueled by subprime woes and the actions of rogue trader Jerome Kerviel, reports Bloomberg. France’s second-largest bank today said net income was 947 million euros, compared to 5.22 billion euros in 2006. SocGen warned further losses could come in the first quarter. 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 »

In this photo of an electoral leaflet for the 2001 municipal elections in Pont l'Abbe, western France, French trader Jerome Kerviel is seen, listed as a candidate for the town's council. Kerviel, who...   (Associated Press)
In this pool photo made available Wednesday, Feb. 6, 2008, French trader Jerome Kerviel is seen at his lawyer Elisabeth Meyer's office in Paris, Tuesday, Feb. 5, 2008. Potential legal troubles for French...   (Associated Press)
Societe Generale bank employees stand outside the bank headquarters in a show of support for Chief Executive Daniel Bouton, Wednesday Jan. 30, 2008 in La Defense, outside Paris. The board of scandal-marred...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 1)

Tags

taxes • Société Générale • Jérôme Kerviel • bank fraud


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »