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December 2, 2008 9:46:32 AM CST

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Cops Hold 2nd Trader in Probe

Posted Feb 8, 08 8:49 AM CST in Business 

(Newser) – A broker who works for a Societe Generale subsidiary is being questioned by French authorities in connection with the $7 billion loss the bank suffered at the hands of rogue trader Jerome Kerviel, the Wall Street Journal reports. Prosecutors and bank officials previously said they believed Kerviel acted alone, but a series of instant messages suggest the second trader at least knew of the scheme.

One of the messages from the broker to Kerviel read: “You did not do anything illegal in the sense of the law.” Kerviel so far has been charged with forgery and illegal use of computers. He is free for the moment but cannot leave France. Police have questioned other SocGen employees, managers, and executives.

Source Wall Street Journal

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Societe Generale CEO Daniel Bouton is seen at the Societe Generale headquarters outside Paris in this Jan.24, 2008 file photo.   (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.   (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)
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