Did $7 Billion Fraud Begin Mondays World Market Rout

In a story I was just reading there is the strong possibility that Frances' Societe Generale's shock disclosure of a fraud that lost it $7 billion has left investors wondering about a link between the fiasco and Monday's European stock market rout. The sharp fall, which was followed by an emergency U.S. rate cut, came as SocGen tried to close out positions built up by one of its traders.


SocGen, France's second biggest bank, said on Thursday that it had been the victim of a massive and "exceptional" fraud by a junior trader resulting in losses of 4.9 billion euros, and announced a large capital increase.

There needs to be an immediate investigation into this matter, and measures put into place to avoid another such event, as it would seem that this is the second time in less than a year, that this has happened!


fraud