Article: French bank hit by EUR 600m rogue trading scandal

Caisse d'Epargne traders took unauthorised gambles on futures derivatives

FRANCE'S FAVOURITE savings bank admitted yesterday that it had suffered a 600m (470m) loss caused by rogue trading in the futures market in a scandal that is eerily reminiscent of the 5bn Kerviel affair that rocked the country earlier this year.

Caisse d'Epargne, known affectionately in France as "the squirrel", said a group of traders had taken larger than authorised gambles on equity-linked derivatives. Their positions, uncovered in a routine check, had to be unscrambled in the midst of last week's market meltdown, leaving Caisse d'Epargne with a 600m loss.

The bank, which is in the process of merging with fellow ...

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