And the questions turn to bank auditors...

Labels: audit, Jerome Kerviel, Societe Generale

This time it is the bank's external auditors who are meeting with French authorities.

-- MDT

Labels: Jerome Kerviel, Soc Gen

Even after infamous rogue trader, Jerome Kerviel's multi-billion dollar scandal at Society Generale, a new report from Risk Management vendor Actimize indicates that often as not suspicious activity reports are closed out without any kind of proper review. Half of the firms reviewed also have no form of integrated monitoring. I am sure Actimize would like help all of you fix this. Get the details on their research right here.

Labels: Actimize, anti-money laundering, Jerome Kerviel, risk management, Societe Generale

Lemaire Consultants, an IT consulting firm, is the lucky employer of Societe General's billion dollar rogue trader. Kerviel, who is still under investigation, is banned from trading in financial markets, but it looks as if he's found a way to put his "back office" knowledge back to work. Moneyweb has the details on how Kerviel got hooked up with Lemaire.

-- MDT

Labels: Jerome Kerviel, Lemaire Consultants, Societe Generale

Well, not quite. Bouton will close out 15 years as the Societe Generale's chief executive, but will retain his position as Chairman of the board. Former SocGen CFO, Frederic Oudea will step in to the role of CEO. He has most recently served as deputy chief executive.

And Jerome Kerviel? Free on bail...

--MDT

Labels: Daniel Bouton, Jerome Kerveil, Jerome Kerviel, Societe Generale

While former trader Jerome Kerviel is a free man, the trouble for his former employer may be just starting. Chief executive, Daniel Bouton is being probed by the French parliament (though Bouton himself has been touting a brighter side). If you feel like you need a re-cap on the whole SocGen affair, try this newly published Fortune article, which provides a fine summary.

Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.


-- MDT

Labels: Daniel Bouton, FINRA, Jerome Kerviel, Societe Generale

Lets get one thing straight - rogue trader or no, Jerome Kerviel does not accept responsibility for "all the turpitude of Société Générale." So says clarifies his lawyer, Guillaume Selnet.

Not that Kerviel has ever mollified his situation by claiming any accomplices to his activities - quite the opposite. Nor has he ever stated that there was any involvement from the bank at large.

So how then does Kerviel hope to, lets face it, shirk responsibility for his misdeeds? The key, his counsel claims is not complicity, but rather complacency at the bank.

Uh-huh. Good luck with that. But at least he's out of prison, right?

-- MDT

Labels: Jerome Kerviel, Societe Generale

His prison stay over along with his 15 minutes of fame, SocGen rogue trader, Jerome Kerviel was released from prison this week thanks to a favorable Appeals Court ruling. He was advised, though, not to leave town. Paris is not the worst place to pass your time, I'd imagine.

Released earlier in the week was the second additional figure to be arrested in connection with Kerviel's activities. Manuel Zabraniecki, of SG securities was questioned for 10 hours by police before being cut loose.

Kerviel continues to assist that he acted alone.

-- MDT

Labels: Jerome Kerviel, Manuel Zabraniecki, Societe Generale

French authorities are busy hunting Jerome Kerviel's accomplices and it looks like they've stumbled upon someone of interest.

An unidentified employee from a Societe Generale subsidiary has been taken into custody and the bank's HQ has been subject to a search. This is the second such individual to be picked up.

The first, Moussa Bakir, arrested last month based on instant message exchanges he had with rogue trader, Jerome Kerviel. Bakir was promptly released after a day or so of sweating by French police.

We don't have a name yet for this new individual, but it is sure to come our in short order. Here's the latest update on SocGen via Bloomberg.

-- MDT

Labels: Jerome Kerveil, Jerome Kerviel, Mousa, Societe Generale

This time from a senior Fimat executive who confirmed for the FT that their firm ( a Soc Gen subsidiary) had been investigating Jerome Kerviel's trades months earlier than Societe Generale's public announcement. In September Fimat began digging on Kerviel friend, Moussa Bakir including commissions paid to Bakir as the result of several of Kerviel's trades. See Reuters for more info.

-- MDT

Labels: Fimat, Jerome Kerveil, Jerome Kerviel, Moussa Bakir, Societe Generale

Despite instant message exchanges that might suggest otherwise, broker Moussa Bakir, professional colleague (and Facebook buddy) of Jerome Kerviel told French authorities that he had no knowledge of the unapproved trades perpetrated by Kerviel.

Bakir's comments were released by police and published in French newspapers this week. He has spend two days under interrogation in connection with the Kerviel case but little insight, it seems, has come from those conversations.

On thing that does seem clear though is that internally at Societe Generale claims that Kerviel's activities were unknown until only weeks ago are starting to disintegrate.

For more on that subject check out this piece from the IHT.

--MDT

Labels: Jerome Kerviel, Moussa Bakir, Societe Generale

You may remember Mr. Seet, a senior partner at hedge fund compliance advisory firm Sigma Partnership, from this thoughtful article on the state of hedge fund fraud in Europe. If you've been following the Jerome Kerviel story and the floundering fortunes of Societe Generale, you'll want to read his recent blog post on the subject. Let's hope it is one of many to come.

-- MDT

Labels: Jerome Kerviel, Joe Seet, Sigma Partnership, Societe Generale

Moussa Bakir a broker at Fimat (now NewEdge), a subsidiary of Societe Generale, appeared before French Judges on Saturday based on the suspicion that he may have had advance knowledge of Jerome Kerviel's illicit trades.

Bakir had been held - and one imagines, sweated - for the preceding 48 hours. While Bakir doesn't appear to have revealed anything of substance during his conversation with authorities, he has been named an assisted witness, basically somewhere between assisting authorities and being prosecuted by them.

Bakir's name came to the attention of investigators based on instance message files recovered from Kerviel's computer (he was also one of Kerviel's Facebook friends). Some 2000 Kerviel IMs were leaked to leaked to Nouvel Observateur magazine.

Kerviel's legal team have dismissed the Bakir instant messages as "irrelevant." Here's an example of one the irrelevant exchanges (one of many appearing in the FT):

October 11 - Kerviel writes: “You haven’t said anything about our trades? If so, I’ll smash your face in.” Bakir replies: “Woa. You’re mad. It’s between you and me.”

Yep...completely unrelated to the charges at hand.

Kerviel, for his part, had also been released days ago but was