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Rogue Trader Causes $7.2 Billion Loss

News Flash: The Biggest Fraud in Banking History

While U.S. banks have been making daily news for their financial troubles, France's Societe Generale made the biggest bank headline yesterday. A rogue trader named Jérôme Kerviel managed to lose about $7.2 billion with a series of bogus transactions over the past year. The 31-year old trader was responsible for betting on the markets' future performance and it's unclear if he sought personal gain from the fraudulent trades. Financial Times reports that these could be "the biggest frauds in investment banking history." The bank has filed a police report and it will be interesting to see what the punishment will be for the enormous scale of the fraud.

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terryt18 terryt18 8 years
I read about this today too. OMG! How?
sophia_HL sophia_HL 8 years
Idiot.
redegg redegg 8 years
Do you think the MIGHT have something to do with the downturn in the stock market lately- or is it just all the US Economy? 7.2 Billion dollars.
wickidgrrl wickidgrrl 8 years
WHOAAA...that's some serious cash!!
gigill gigill 8 years
Er, I meant to say wasn't discovered sooner.
gigill gigill 8 years
I was reading about this, but I'm still not sure a) how his fraudulent trading was discovered and b) how his fraudulent trading wasn't discovered! How odd!
Lovely_1 Lovely_1 8 years
I just read about this! It's insane!
SkinnyMarie SkinnyMarie 8 years
I'm still so confused as to how this could happen in todays world of everyone double checking and not being the sole decision maker.
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