General company(society): questioning on Jérome Kerviel's role 25.01.2008 ¦ 10:54
The lawyer of the broker asserts that her customer " did not flee ". Numerous analysts doubt that a single man can be responsible for 4,9 billion euro of losses.
The lawyer of Jérome Kerviel, suspected of having made lose 4,9 billion euro to the General Company(Society), asserted on Thursday evening, January 24th that her customer " did not flee ".
Mrs Elisabeth Meyer declared to AFP: " I confirm that my customer did not flee ". " It was verbally indicated to him(her) on January 20th by his employer, the General Company(Society), that he(it) was put on foot and it was asked to him(her) not to appear at its job(workstation) next Monday, in January 21st ", clarified Mrs Meyer.
She added that her customer " is looking forward to a written announcement of this measure ".
The sceptic analysts
But numerous analysts remain sceptic in front of the General explanations of the Company(Society), according to which a single man would be responsible for 4,9 billion euro of losses.
" The feeling of dealing rooms, it is because it is not possible that a single individual was able to make it. The General Company(Society) would have loaded(charged) the boat on the subject of the fraud to make cross(spend) several bad operations of market ", advance(move) Elie Cohen, research director(manager) to the NATIONAL CENTRE FOR SCIENTIFIC RESEARCH, questioned by AFP.
" The General Company(Society) says to us that a senior broker speculated on actions(shares), notably indications of actions(shares), without covering itself. He(it) would have hidden the losses become quickly colossal. It seems that he acted during all year 2007 ", he called back(reminded).
"A little bit big"
" It seems a little bit big that during a whole year we can hide " such a loss.
The General Company(Society) says that " the broker knew so well the operations of internal control " that he managed to hide his losses, pursues Elie Cohen, what means that " the procedures of control intern which normally establish(constitute) the core business of banks showed themselves dramatically insufficient ".
From his part, Marc Touati, economist at Global Equities, asserts that " all people who work in banks know that, when the losses reach(affect) certain level, we cut the positions. Losses can reach(affect) 100-200 million euro, but 5 billions, it is impossible ".
" Let be what the bank says be true. In that case, there is a problem of control of the risks and it can throw(cast) the depreciation on the General Company(Society), as far as his(her,its) comparative advantage, it is to be a champion of the activities of market. Let be one does not know everything ", he(it) argues.
" Load(charge) a poor guy "
The General Company(Society) is maybe " load(charge) a poor guy to make cross(spend) losses which accumulated " during the crisis of "subprimes", makes more expensive(adds) an analyst of a company(society) of management.
" A single person cannot provoke such a disaster. If a broker acts for a customer, at least three persons come into play to give the order, pass on it and execute him(it) ", estimates(esteems) Arnaud Riverain, analyst of Arkéon Finance, who reminds however that there are the precedents, as the bankruptcy of the British bank Barings in 1995, because of a single man, Nick Leeson.
" Hard to hide "
Peter Cardillo, analyst of Avalon Partners in New York, judge difficult, seen amounts in game(set,play), that the broker of the General Company(Society), Jérome Kerviel, was able to act only " except if it is about Einstein ".
For Mace Blicksilver, of Marbelhead Asset Management, if the fraud had begun " three weeks ago, it is completely possible whom a single person is there originally. Longer, it seems to me hard to hide ".
The governor of the Bank of France Christian Noyer said from his part "someone to himself" that the 4,9 billion euro loss undergone by the General Company(Society) was not attributable at the bank which would have try to disguise losses bound(connected) to the crisis of "subprime". Questioned on this subject about LCI, he answered: " not, it is absolutely certain ".
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