Rogue trader to cost SocGen $7bn: French bank Societe Generale says it has uncovered "massive" fraud by a Paris-based trader which resulted in a loss of 4.9bn euros ($7.1bn; £3.7bn). The loss is only a quarter of the loss caused by Nick Leeson.
The bank said the fraud was based on simple transactions, but concealed by "sophisticated and varied techniques". It also announced new write-downs of 2.05bn euros related to the sub-prime mortgage crisis in the US. The fraud is an extraordinary echo of the rogue trader, Nick Leeson, who caused the collapse of Barings Bank in 1995, says BBC business correspondent Nils Blythe. But the losses uncovered by Barings bosses totalled just £860m - about a quarter of the amount lost by Societe Generale. The bank, one of France's largest, will need to seek 5.5bn euros in new capital to offset the losses.
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