Don't miss

Replay


LATEST SHOWS

THE DEBATE

Populist takeover: Italy approves unprecedented coalition

Read more

FOCUS

Young Nicaraguans lead protests against President Ortega

Read more

ENCORE!

Music show: Opera singer Lawrence Brownlee, Snow Patrol & Natalie Prass

Read more

TALKING EUROPE

EU Commissioner Johannes Hahn: 'Either we import stability, or we export instability'

Read more

TALKING EUROPE

From Italy to Cyprus via Hungary: A look back at key events in Europe

Read more

BUSINESS DAILY

US-China trade war is 'on hold'

Read more

#TECH 24

Is GDPR a good thing for EU tech companies?

Read more

PERSPECTIVE

'The internet is like water, we need to help children understand how to swim'

Read more

THE OBSERVERS

Horse massacres in Iran, fake news turning deadly in India, and Ivory Coast's drought

Read more

Probe opened into Caisse d'Epargne trading losses

Text by AFP

Latest update : 2008-10-27

The preliminary investigation into "abuse of trust" could lead to criminal charges for the huge losses caused by the bank's share derivatives traders over several weeks in September and October.

French prosecutors have opened a probe into how the Caisse d'Epargne bank lost 700 million euros in risky derivatives trading at the height of the global finance crisis, a judicial official said on Monday.
  
The preliminary investigation for "abuse of trust" could pave the way for criminal charges to be brought in connection with the huge losses racked up by the bank's share derivatives traders from mid-September to early October.
  
Caisse d'Epargne has already said that an internal investigation revealed evidence of "abuse" by its own staff, who reportedly exceeded limits set on the amount of funds that could be risked at any one time in market plays.
  
Finance Minister Christine Lagarde, furious that the losses undermined attempts to restore confidence in financial institutions battered by the global crisis, said a banking commission inquiry found "serious deficiencies in the control system" at Caisse d'Epargne.
  
The bank's two most senior executives resigned in the wake of the scandal.
  
Now, Paris prosecutors have asked the French banking commission to hand over its file on the case with a view to deciding whether anyone should face formal charges, the judicial official told AFP.
  
The French government has insisted that the country's major banks are all stable despite the international credit crunch, and have in any case promised state aid to bail-out any failing institution and protect depositors.
  

Date created : 2008-10-27

COMMENT(S)