FRAUD HAS THE GENERAL COMPANY(SOCIETY)

The responsibility of the CEO Daniel Bouton questioning
29.01.2008 ¦ 09:43

The Minister Christine Lagarde considers that it means " to the administrators making their decision " on its preservation in the head of the bank, whereas Nicolas Sarkozy implicitly declared that he wished his resignation. The trader Jérome Kerviel, indicted on Monday evening, asserts that the other traders of the General Company(Society) invests(surrounds) beyond authorizations.


Daniel Bouton
The indictment, on Monday evening, of the trader of the general Company Jérome Kerviel, which would be responsible for a record 4,9 billion euro loss, did not raise the questioning on the role of the CEO of the bank, Daniel Bouton.
The Minister of Finance Christine Lagarde asserted, on Tuesday, January 29th, that it meant " to the administrators making their decision " on the preservation or not of Daniel Bouton in the head of the General Company(Society), on Tuesday on LCI. Lord Chancellor, Rachida Dati considered on France Info that the responsibility of the CEO of the General Company(Society), Daniel Bouton, " can be engaged(started) ". On France Inter, Jean Arthuis, president of the committee(commission) of the finances to the Senate expressed too his doubts on Tuesday morning: " I do not think that Button can make what(whom) to leave ", he declared.

Sarkozy demands implicitly his(her) resignation

On Monday, Nicolas Sarkozy implicitly declared that he wished the resignation of Daniel Bouton. " I do not like concerning a personal judgment(sentence) people, especially when they are in the difficulty, but (...) When we have a strong payment, what was doubtless justifiable, and that there is a strong problem, we cannot exempt themselves from responsibilities ", declared the president.
" When there is an event of this nature, that cannot stay without consequences s'agissant responsibilities. Each has to wonder about his responsibilities ", he(it) repeated.
The socialist deputy Pierre Moscovici was more explicit, declaring " completely not to believe in the thesis of the isolated man ".

Freely under legal restriction

The trader Jérome Kerviel was indicted on Monday, but left freely under legal restriction without that the charge of swindle is held(retained) against him.
Outside the hearing(audition), the lawyers(avocados) of Kerviel criticized in front of the journalists the complaint of the bank, because according to them the practices of commitment of traders beyond the theoretical authorizations were known and tolerated by the direction(management). They want it for proof that Jérome Kerviel asserts that he had to get(touch) a 300.000-euro bonus in conformance with his earnings(gains) for the benefit of the bank for 2007. Lawyers(avocados) are now going to ask for the hearing(audition) of all the people in charge of the bank.
The prosecutor revealed that the market of by-products Eurex, on whom Kerviel had taken important positions, had alerted(notified) the general Company(Society) last November schemes of the trader, which would then have produced a false supposed document to give evidence of the cover(blanket) of the risk.

Failed bet

The magistrate confirmed that Jérome Kerviel had operated on forward contracts bound(connected) to European stock indexes and that he had almost to gain(win) his bet. Actually, his(her,its) astronomical 50 billion euro positions - the equivalent of the GDP of Morocco - had virtually made gain(win) 1,4 billion euro to the bank on December 31st, 2007, and they were still credit three days before its liquidation(sales). Mrs Christian Charrière-Bournazel so exploits(asserts) that it is the general Company(Society) which realized the loss by deciding to liquidate the positions at the beginning of the week last one, while markets were falling(flopping).
Christian Noyer, the governor of the Bank of France, defended(forbade) the attitude of the general Company(Society) by explaining that the establishment had been right to liquidate without waiting for the deceitful position since she(it) had been discovered.
" The position was 50 billions. From the moment the president (of the bank) knew this position, it became its position ", he explained.
" This decision is probably the only one who could be taken to make sure that the establishment would not run(roam) so for a long time a dramatic risk ", he added.
The Minister of Finance Christine Lagarde clarified that she would put back(hand) on Friday to the Prime Minister François Fillon the report(relationship) for which he asked him(her) on the affair(business).