SocGen blames one trader for $607m penalty

Pointing The Finger

It's all his fault.

Bloomberg News reports that Societe Generale has placed sole blame on an ex-trader it didn’t identify for interest-rate rigging that cost it $607m in European antitrust fines.

'The events essentially relate to inappropriate conduct by one employee who left Societe Generale in September 2009', the bank said in a written statement Wednesday. 'All these actions were carried out without the knowledge of his supervisors or the bank’s management'.

The trader 'was not the initial instigator of these manipulation attempts' and 'mostly responded to requests from an operator working at another bank', Societe Generale said. It found 'some attempts to manipulate the Euribor rate' from March 2006 to May 2008, it said, based on an almost two-year long internal investigation.

Hit the link below to access the complete Bloomberg News article:

SocGen Blames Single Trader After $607 Million Penalty

Deutsche Bank to RBS Fined by EU for Rate Rigging

image: © Lisamarie Babik

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