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Article: French bank hit by EUR 600m rogue trading scandal
- Article from:
- The Independent (London, England)
- Article date:
- October 18, 2008
- Author:
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Copyright informationCopyright 2008 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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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 ...