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Bank Blames Managers In Rogue Trading Case
Friday, 23-May-2008 8:44AM United Press International
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PARIS, May 23 (UPI) -- Managers at French bank Societe Generale failed to act to stop the biggest trading fraud in history, an internal bank report said.

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A source, who said he read the report, told the International Herald Tribune that two of accused rogue trader Jerome Kerviel's supervisors, Eric Cordelle and Martial Rouyere, would be fired.

"They had a 9-in-10 chance of discovering what was going on. It was an enormous management failure", the source said.

The report also says Kerviel's assistant, Thomas Mougard, made several of the fraudulent trades, although it doesn't clarify whether he was an accomplice or a unwitting helper.

In January, it was discovered that Kerviel had made $7.2 billion in unauthorized trades.

Auditors from PricewaterhouseCoopers are expected to approve of steps the bank has taken to improve internal controls, the source said.

Last month, the bank said it would spend $150 million this year to improve risk-management systems, the Herald Tribune reported.

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