Police in France are to continue questioning the man thought to be behind the massive financial fraud at France’s number two bank Societe Generale. Futures trader Jerome Kerviel was taken into custody last night as part of the investigation into unauthorised moves that cost the firm close to five billion euros.
Jean-Michel Alderbert, who is heading the inquiry, described Kerviel as ready and willing to explain his role in the affair, but refused to say whether he will be released or not later today.
French officials say the 31-year-old relatively inexperienced trader was dealing with some 50 billion euros and did not stand to gain personally from the illegal trades.
But some experts have suggested that Societe Generale may have exacerbated the fall and this indirectly led to the US Federal Reserve’s subsequent decision to cut interest rates.