Jérôme Kerviel, the French rogue trader, was freed on bail last night, reports The Times.
He has admitted that he concealed billions of euros’ worth of secret deals but said that he was acting in his bank’s interest and that others also broke the rules, the chief Paris prosecutor said yesterday.
He was released after three days in custody as the scandal around the Société Générale bank widened. There were allegations of insider trading and claims that it had ignored a warning from the German Eurex exchange in November that Mr Kerviel had carried out a heavy, suspect trade.
Sketching Mr Kerviel’s version of the historic €5bn euro (£3.7bn) trading loss, Jean-Claude Marin, the prosecutor, implied that the bank may have turned a blind eye towards illicit trading by its staff.
ALLIANCE & LEICESTER has revealed its losses from the credit crunch are much worse than earlier estimates and its chief executive David Bennett is currently off work ill, reports The Guardian.
In an unscheduled trading statement this morning, the UK bank said that the value of a range of assets, including investments backed by sub-prime mortgages, has now dropped by £185m.
Less than two months ago, A&L had told shareholders that these so-called "toxic loans" had made a £55m hole in its profits for 2007.
Most of the increased loss came on A&L's investments in structured investment vehicles. These SIVs are often backed by high-risk US mortgages, and have plummeted in value as the American housing market has crashed.
TUMBLING PREMIUMS HAVE prompted insurers at Lloyd's of London to cut forecasts for the amount of risk that they plan to underwrite this year, reports The Times.
In its annual update on the underwriting capacity of its 75 syndicates, the world's oldest insurance market said that its member companies planned to stand behind £15.95billion of insurance risks this year. This compares with £16.1billion last year and comes despite the emergence of nine new syndicates as well as two managing agents during the past 12 months.
In the absence of natural disasters or big aircraft crashes, premium rates for aviation and catastrophe insurance have fallen by between 5 and 20 per cent, according to industry estimates.
020 7034 2636
Chris St John to take over £3bn UK Select Opps
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
Short-term noise or something sinister?