Saturday, February 9, 2008

Accomplice? Whitewash? Malfeasance?

The New York Times has some good reporting on the current state of the SocGen investigation. There were several queries to the bank from Eurex on or about Nov. 30 regarding Kerviel's trading and his relationship with the bank's brokerage, Newedge (formerly called Fimat). These queries had been reported before, but the additional detail here adds further weight to the charge that the bank was remiss in not uncovering Kerviel's dealings sooner (or that it may have known about them all along and did not act to close out his positions until it seemed that they might plunge seriously into the red). And a possible accomplice of Kerviel's has been arrested.

The fact that none of this detail appeared in the Lagarde Report, on which I commented the other day, may be yet another grievance of Sarkozy against his minister of finance. Yesterday the radio station BFM reported that Lagarde had submitted her resignation and been refused. Other media then picked up the story and added the details--how they got them I do not know, nor can I say whether they are accurate--that Lagarde resigned after being reprimanded by Sarkozy at Wednesday's Council of Ministers meeting only to be told that she would not be allowed to resign until after the municipal elections.

1 comment:

Scott Guye said...

I'm curious about Kerviel's 'provisionary' imprisonment?

While it looks like SG is trying to throw the book at him, I doubt it's as simple as a 'rogue trader' who went completely unnoticed. I'm sure there's more still to come.