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...could have been the plot of a thriller: A young lone trader secretly concocts bogus transactions for months, in an attempt to cover his spiraling losses, until he has siphoned off billions of euros from under the noses of one of France's most venerable institutions. For Société Générale - France's second-biggest bank - the details were all too real, however, as stunned executives attempted to explain on Thursday how a mid-level employee lost 4.9 billion euros ($7.2 billion) in a rogue operation without anyone noticing...

Author: /time Magazine | Title: France's $7.2 Billion Hit | 1/24/2008 | See Source »

...what could be one of the biggest inside frauds in banking history, French futures trader Jérome Kerviel, 31, effectively created his own trading firm within the bank's market rooms, according to Société Générale CEO Daniel Bouton. "He succeeded in building this hidden firm, in building his positions by hiding them by other positions that were totally fictional," Bouton told reporters at a Paris news conference on Thursday. "That is what is so extraordinary about this case." Bouton's offer to resign was rejected by the bank's administrators this week...

Author: /time Magazine | Title: France's $7.2 Billion Hit | 1/24/2008 | See Source »

Kerviel's identity was revealed on the Financial Times and Daily Telegraph websites, but was not confirmed by bank officials, who admitted on Thursday that the rogue trader appeared to have gone to ground and that they had no idea where he was. Executives said two years ago, the trader had a back-office job in the bank working on internal controls to prevent questionable and suspicious trades. He then transferred to a position trading in so-called "plain vanilla" stock futures in European markets. He earned a salary of about 100,000 euros (about...

Author: /time Magazine | Title: France's $7.2 Billion Hit | 1/24/2008 | See Source »

...Daily Telegraph, which posted a photograph online of a slender, dark-haired man. Despite the weekend revelations, three days lapsed before executives suspended trading of Société Générale shares. They declined to tell reporters at Thursday's press conference why the trader had not been immediately fired, nor why they had not involved the French police...

Author: /time Magazine | Title: France's $7.2 Billion Hit | 1/24/2008 | See Source »

...Monfreid meets, among others, an imprisoned spy (a "venomous reptile") whose escape he enables and later regrets; a Chinese trepang trader on a deserted island; a metrosexual polyglot butler; a Bedouin shouldering a Remington; a priest who manufactures hashish; and a hashish distributor who operates from an undertaker's office. He sketches all the misfits he encounters with anthropological and sartorial precision, colorfully and poetically noting the red tarboosh of a Tigrean guard; the "sublime crease" of a servant's "beautiful putty trousers"; and a Greek engineer's soiled celluloid collar, "yellow and clouded as a clay pipe...

Author: /time Magazine | Title: Old Man of the Sea | 1/23/2008 | See Source »

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