As I recall the original story, he had previously worked in some position in the company which gave him knowledge of a 'back-door' into the trading system. That knowledge let him completely bypass the normal system safeguards. He apparently also had a way to cover his tracks. This went on for quite some time before it was detected.
I’m sorry, but that such a junior person singlehandedly managed to establish binding trading positions in the name of the bank in excess of $70 billion demonstrates that SoGen’s system of internal controls is a giant joke, and a failure across the entire spectrum of segregation of duties, independent checks, the authorization, approval and documentation of transactions in the name of the bank and managerial oversight.
There is more going on with regards to his brother....and more coming out every day.
When questioned by his boss about some ficticious traders ability to pay, he wrote a ficticioius email from the ficticious trader and the boss apparently accepted it.
Society General may not be left standing by week’s end.