Fraud in Societe Generale by Sandra Stoklaskova

Horrible piece of news rounded the world today! Societe Generale, one of the biggest banks in France brought to light one of the history's biggest defalcation. Second largest French bank uncovered $7.14 billion fraud, and assume 5.5 billion Euros what is approximately $ 8.02 billion losses in new capital. The fraud was detected during the weekend at French markets sections. Janine Dow, senior director at Fitch Ratings financial institution group in Paris, said: "Detecting the fraud over the weekend was problematic because world stock markets on Monday and Tuesday fell hugely around the world." According to executives, the clever man is a French trader, 30 years old, who acted alone. "The trader's motivations were irrational and he may not have benefited directly from the fraudulent deals", said CEO Daniel Bouton. The trader was fired and his superiors have left the group. Shares in Societe Generale lost nearly half of their value, due to bad situation on financial markets and dropped on Tuesday morning by 5.5 percent to 74.77 Euros. This fraud is considered to be the largest ever by a single trader. It has also outmaneuvered the bankruptcy of British bank Barings, which collapsed after Nick Leesons lost of 860 million pounds on Asian future markets. Leeson was a general manager of Singapore bank, and his lost was worth $1.38 billion. "It shows that we are in a very troubled period for banks, and I think that it's in such troubled periods that difficult things happen", said Gilles Glicenstein, president of asset management at rival French bank BNP Paris

related story: http://news.yahoo.com/s/ap/20080124/ap_on_bi_ge/france_societe_generale_fraud;_ylt=Aj_reVd0dxJsh7LG7DjMP.Gs0NUE

by Sandra Stoklaskova for PocketNews (http://pocketnews.tv)

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