Societe Generale boss admits faults in control systems

0 Comments | AFP, June, 2008

PARIS (AFP) — The head of French bank Societe Generale, who faced pressure to resign over a massive rogue trader scandal, admitted in an interview published Tuesday that the bank's internal control systems had faults.

Chairman Daniel Bouton, speaking to French Internet site Mediapart, said: "The controls were carried out in accordance with the rules for each area concerned.

But "a horizontal method for assessing the risk of fraud, (and) a pooling of the information, was missing.

"It was the lack of this method that allowed Jerome K to play on the different deficiencies, which his experience in the backoffice had enabled him to see."

Jerome Kerviel, 31, was involved in deals which the French bank says cost more than seven billion dollars in the...