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Police question second trader By PIERRE-ANTOINE SOUCHARD, Associated Press Writer 14 minutes ago French police were holding a second person for questioning about the loss of billions at bank Societe Generale, a judicial official said Friday. The person, who worked at a brokerage partially owned by Societe Generale, was taken into custody on Thursday and was still being held, said the official, who asked not to be identified because of the sensitivity of the case. Bank spokeswoman Joelle Rosello confirmed that an employee of Newedge, a 50-percent owned affiliate, was in custody in connection with the scandal. "We are cooperating...

January 31, 2008 Bankers call the tune but we pay the piper Carl Mortished: Business Commentary The music stopped and everyone found a seat. As party games go, the version of musical chairs played out in Europe yesterday lacked that frisson of excitement created by uncertainty. In Paris, Daniel Bouton survived as chairman of Soci鴩 G鮩rale; Mervyn King was told to carry on running the Bank of England for a further five years; and in Zurich, Marcel Ospel remained at the head of UBS. As if thumbing his nose at his shareholders watching from the sidelines, MrOspel took the running...

French bank finds $7.14 billion fraud By EMMA VANDORE, Associated Press Writer 9 minutes ago French bank Societe Generale has uncovered a $7.14 billion fraud that, combined with a write-down from its subprime exposure, will force it to seek $8.02 billion in new capital, the bank said. France's second-largest bank by market value after BNP Paribas SA said it detected the fraud at its French markets division the weekend of Jan. 19. A trader at the futures desk had taken "massive fraudulent directional positions in 2007 and 2008 beyond his limited authority," SocGen said. The trader, who was not named,...