French bank Societe Generale says it has uncovered "massive" fraud
French bank Societe Generale says it has uncovered "massive" fraud by a Paris-based trader which resulted in a loss of 4.9bn euros, or $7 bn, BBC World News reported.
The bank said the fraud was based on simple transactions, but concealed by "sophisticated and varied techniques".
It also announced new write-downs of 2.05bn euros related to the sub-prime mortgage crisis in the US.
The bank's shares, which were suspended in the morning, lost 3.6% when they resumed trading.
Societe Generale said one trader had taken what it called "massive fraudulent directional positions in 2007 and 2008 beyond his limited authority".