/ 12 March 2008

Société Générale trader held in Kerviel probe

Police arrested an employee from the trading room of Société Générale on Wednesday as part of their investigation into an alleged rogue trading scandal at the French bank, Europe 1 radio reported.

In January, Société Générale unveiled €4,9-billion ($7,53-billion) of losses which the bank blamed on rogue deals carried out by Jerome Kerviel, a 31-year old junior trader at the bank. The losses have made Société Générale a possible bid target.

Europe 1 said police on Wednesday morning arrested a former colleague of Kerviel. Europe 1 did not identify the individual.

”A former colleague of Jerome Kerviel was arrested this morning,” the radio station reported.

A spokesperson for Société Générale said that police had searched the bank’s trading room on Wednesday and added that one person was being held for questioning.

Kerviel has been placed under formal investigation for breach of trust, computer abuse and falsification. He is currently being held in a Paris prison.

Europe 1 radio added that the person held was among one of Kerviel’s friends listed on the Facebook social networking website. – Reuters