Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

THE INTERVIEW

Michel Sidibé, UNAIDS Executive Director

Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Five children among six killed in minibus crash in central France

    Read more

  • Israel identifies ‘missing’ soldier in Gaza

    Read more

  • Hollande says French warship delivery will ‘depend on Russia’s attitude’

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Ukraine rebels release bodies, black boxes from flight MH17

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • An ‘explosion of violence’: French press reacts to Gaza protests

    Read more

  • Notorious ‘VIP’ prison in Paris closed for renovations

    Read more

  • Christians in Iraq's Mosul face execution or exodus

    Read more

  • Scores killed as Libyan militias fight over airport

    Read more

  • Ukraine football players refuse to return home after friendly in France

    Read more

  • China steps up communist education to guard against ‘moral decline’

    Read more

Caisse d'Epargne losses lead to trader arrest

Text by AFP

Latest update : 2008-10-31

An investigation continues following the arrest in France of a Caisse d'Epargne trader suspected of losing more than 750 million euros in unauthorised derivatives trading.

A French judge has opened an investigation into a possible breach of trust by a dealer suspected of losing a bank more than 750 million euros in unauthorised trading in derivatives, judicial officials said Thursday.
   
The dealer, 33-year-old Boris Picano-Nacci, has been in police custody since Wednesday morning and was transferred on Thursday evening to the headquarters of the division dealing with financial crimes after 36 hours of questioning.
   
He was banned from leaving the country or having any contact with former colleagues.
   
He was taken into custody as part of a preliminary investigation that seeks to determine whether anyone is criminally liable for the massive losses, racked up at the height of the global financial crisis, by the Caisse d'Epargne bank.
   
The bank announced losses of 600 million euros on October 17 and has revised the figure upwards several times. It now puts its losses at 751 million euros.
   
The traders reportedly exceeded limits set on the amount of funds that could be risked at any one time in market plays.
   
According to an internal report seen by AFP, the trader ignored instructions given in April to gradually unwind his market positions.
   
"Instead, from September 15... he appears to have engaged in a risky strategy, acting upon his own initiative and for major sums," the report said.
   
"This strategy was renewed several times throughout the month and in October, including for extraordinarily high amounts," but went undetected due to "deficiencies" in the control system at Caisse d'Epargne, it said.
   
Finance Minister Christine Lagarde, furious the case undermined bids to restore confidence in France's financial sector, said a banking commission inquiry found "serious deficiencies" in the bank's controls.
   
The scandal revived memories of the disaster at another French bank, Societe Generale, which lost 4.9 billion euros in unauthorised deals allegedly made by a junior trader Jerome Kerviel.
   
The French government has insisted 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.
   
News of the loss came in the same week as directors of Caisse d'Epargne approved plans to open merger talks with Banque Populaire to form France's second-largest retail bank.
   
Caisse d'Epargne has 27 million account holders -- nearly half of all savers in France --- and employs 51,500 people.

Date created : 2008-10-31

COMMENT(S)