SocGen under pressure as rogue trader released

[Eugene]

Source: Reuters

SocGen under pressure as rogue trader released
Mon Jan 28, 2008 5:05pm EST

By Andrew Hurst and Thierry Leveque

PARIS (Reuters) - Exchange officials warned Societe
Generale about rogue trader Jerome Kerviel's deals
late last year, a Paris prosecutor said, piling pressure
on the French bank to explain why his trades were not
discovered sooner.

The setback came as investigating judges threw out
the most serious accusation put forward by prosecutors
against 31-year-old Kerviel -- attempted fraud --- and
set him free under judicial supervision after two days
of police questioning.

The prosecutor's office said it would appeal the release.

Kerviel has been placed under formal investigation for
lesser allegations concerning breach of trust, computer
abuse and falsification, his lawyer said. Being placed
under investigation can lead to trial, but falls short
of charges.

-snip-

Read more: http://www.reuters.com/article/topNews/idUSL2422020620080128

[CGowen]

1. as usual

The lawyer, Frederik-Karel Canoy, said SocGen should have informed its shareholders and the markets about its difficulties before embarking on a massive selling spree that hurt investors.

He alleged insider trading and market manipulation.

Both Canoy and small shareholder activist group APPAC also said they had filed complaints about the sale of a million shares by a SocGen director, Robert Day, on January 9 and January 10.

SocGen said Day sold the shares well before fraud was found.