Timeline of events in SocGen fraud case
Mon Jan 28, 2008 2:15pm EST
PARIS (Reuters) - The following is a timeline of events concerning the alleged fraud at Societe Generale (SocGen) that caused $7 billion of losses at the French bank.
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Defraud (verb) : Deprive of by deceit; "He swindled me out of my inheritance"; "She defrauded the customers who trusted her"; "the cashier gypped me when he gave me too little change".He was doing his job, but the control systems were not doing theirs. There is a gross failure of the controls they seem to have in place. I have a few observations in my security blog. And according to the statements they have
(Webster's Online Dictionary)
SocGen style fraud could strike again, but biggerThe statements from the bank are changing and will be worth following. As of today 1/30 the amount has been changed from 7.1bn to 5.1 bn. The trader is no longer a 'rouge' because he has been at this job for too long to be in the rogue category. More needs to come out in the open because it is impossible to believe that this one guy could do so much without ANYONE in the bank having a clue about what he did and how he did what he did.
Thu Jan 24, 2008 11:13am EST
By Andrew Hurst, European Banking Correspondent
ZURICH (Reuters) - French bank Societe Generale's 4.9 billion euro ($7.1 billion) loss, blamed on a single employee, is a stark reminder that rogue traders can elude the most sophisticated security systems until it is too late
"We have a hyper-sophisticated system of checks and controls. It's very hard to understand," said a senior employee at the bank who asked not to be identified. "But there are always holes in any system."
Labels: control failure, fraud, hedging, societe generale, trading loss