Police search Societe Generale, take trader into custody

March 12th, 2008 - 10:58 pm ICT by admin  

Paris, March 12 (DPA) As part of the investigation into the loss of nearly 4.9 billion euros ($7.5 billion) by a single trader for the French bank Societe Generale, the police Wednesday searched the bank’s share-trading area and took a trader into custody. The search was ordered by magistrates looking for accomplices who might have helped the alleged rogue trader, 31-year-old Jerome Kerviel, conceal his activities.

Kerviel could be charged with forgery and breach of trust for having carried out allegedly unauthorized transactions that ultimately cost Societe Generale nearly 4.9 billion euros to clear up.

Since the announcement of the loss and an additional 2 billion euro loss due to the US subprime crisis, rumours have circulated that Societe Generale could be a takeover target.

The business daily La Tribune reported Wednesday that another large French bank, BNP Paribas, would make a bid for Societe Generale in May.

Partly as a result of the story, Societe Generale shares were up by more than 6 percent, at 71 euros, in mid-afternoon trading on the Paris Bourse.

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