Thursday, January 24, 2008
Societe General, France's second largest bank, announced a $7.16 billion write-down due to "massive fraudulent directional positions" by a single trader in charge of futures hedging on European equity market indices. The unnamed trader concealed losses through an elaborate scheme of fictitious transactions. The loss is the largest from a rogue trader. Both the trader and his supervisor were fired. WSJ, Societe Generale Hit By Fraud, Write-Downs.