American regulator investigates share sale by SocGen director
Tuesday 05 February 2008
American regulators have begun inquiries into Société Gé*érale, the French bank caught up in an alleged €4.9bn (£3.7bn) rogue trading scandal, and a director who sold shares days before the losses were revealed.
Meanwhile French officials have unveiled the results of their investigation into the bank's losses.
The Securities and Exchange Commission, the US financial regulator, is looking into share sales by Mr Robert Day, a non-executive director of SocGen who is based in the US.
A spokesman for Mr Day said he had not received formal notice from the SEC. "All required government disclosures were made. No inside information was used in any way with respect to these sales. Mr Day has pledged his co-operation into any inquiries of this matter," he added.
Mr Day is already the subject of a lawsuit in France. Frederik-Karel Canoy, a French lawyer, filed a suit against the bank and Mr Day on behalf of 100 minority shareholders shortly after the scandal emerged. The non-executive director and his family's trusts and charitable foundations sold €45m (£35m) worth of shares on 18 January, although the bank said he had no knowledge of the losses until two days later.
The Financial Services Authority and the French regulator, the Autorité des Marchés Financiers, have been scrutinising whether any trades anticipated SocGen's unwinding of the positions built up by Jérôme Kerviel last month.
Also yesterday the French Finance Minister, Christine Lagarde, presented the Prime Minister, François Fillon, with the findings of an investigation into the bank begun on 25 January. The report called for tougher internal controls across the banking industry, and increased penalties for risk management failings.
It said SocGen's internal systems did not function as they should have, and listed eight deficiencies within the group's controls, including surveillance of nominal positions and cash flows. It noted the bank's failure to follow up warnings from Eurex, the European derivatives exchange, which queried trading positions at the end of last year, and criticises its supervision of M. Kerviel.
Ms Lagarde praised the way SocGen had unravelled M. Kerviel's trading position, and added that the sale did not break market rules.
SocGen said the report had not called into questions its systems used to manage market risk, and added that measures were in place to deal with the controls that were circumvented by the fraud.
auctionThe first 23 lots have now gone. But there are 22 more still up for grabs
comedy'Fresh Meat' star sees off stiff competition from Alan Carr, David Mitchell, Graham Norton, Lee Mack and Sarah Millican to win top prize
musicPolice chief rejects rappers' claims that his work is as dangerous as law enforcement or military service
tvSpoiler alert: Find out the result of a heated final show
Beatles rush out 'bootleg' album to defy EU copyright law
Harvey Weinstein reveals his secret weapon on-set
Now that an oil trader's drinking has got him sacked, will we all have to make do with an afternoon latte?
Chiwetel Ejiofor and Idris Elba get nods for Best Actor, which no black Brit has ever won
Geoffrey Macnab reviews The Desolation of Smaug - the meat in Peter Jackson's Hobbit sandwich
peopleWhat advice would David Cameron give to his younger self?
Auction house to give away $1m masterpiece in charity raffle - and tickets are only $100 each
Nelson Mandela memorial: ‘Bogus’ sign language interpreter made mockery of Barack Obama’s tribute in Soweto
Mystery of Epping Forest 'big cat' is solved
French café starts charging extra to rude customers
Australia: Gay marriage law reversed by high court less than a week after first weddings
Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 1 Nelson Mandela memorial: ‘Bogus’ sign language interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 Mystery of Epping Forest 'big cat' is solved
- 3 French café starts charging extra to rude customers
- 4 Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 5 Physicists discover 'clearest evidence yet' that the Universe is a hologram
- < Previous
- Next >
iJobs Money & Business
£30000 - £45000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Pre-Sales / Cl...
£40000 - £60000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£40000 per annum: Harrington Starr: Senior Network Engineer (CCNP, CCIE, Netwo...