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Trader held over losses at French bank
29.10.08
A suspected rogue trader was arrested in France today over the loss of €751 million (£601 million) at savings bank Caisse d'Epargne.
French police detained the man as part of an investigation into whether anyone was criminally liable for the losses racked up in derivatives trades amid this month's market turmoil.
The move revived memories of the disaster at French bank Société Générale, which last year lost €4.9 billion in unauthorised deals.
Caisse d'Epargne, which has 27 million account holders and employs 51,500 staff, announced losses of €600 million two weeks ago but has revised the figure upwards to €751 million.
The bank's top three executives, including chief executive Charles Milhaud, have already resigned over the losses. French finance Minister Christine Lagarde said a Banking Commission inquiry found "serious deficiencies" in the bank's control system.
