French banks told to shape up

February 04, 2008

A report from French economy minister Christine Lagarde exposes numerous shortcomings at SocGen, which was warned last year by Banking Commission inspectors that its security systems were not up to scratch.SocGen has blamed the losses on rogue futures trades carried out by a single junior trader, Jerome Kerviel, who is now under formal investigation for falsification, computer abuse and breach of trust after fraud accusations were disallowed.Joanna Partridge reports for Reuters