PARIS Oct 30 Trader Boris Picano-Nacci was
heard by a magistrate on Thursday in conjunction with a probe
into a 750 million euro ($979 million) loss at Groupe Caisse
d'Epargne, said a legal source briefed on the matter.
Picano-Nacci, a 33-year old who worked on the trading desk
of the bank, was held for questioning over the incident. He
could not be reached for comment.
The Paris prosecutor's office said earlier this week that
it had opened an investigation after Caisse d'Epargne filed a
lawsuit against persons unknown for breach of trust at the
The Caisse d'Epargne trading loss recalled an earlier
scandal this year when rival Societe Generale (SOGN.PA)
revealed 4.9 billion euros of losses, which it said were caused
by unauthorized trades by Jerome Kerviel, a junior trader at
French President Nicolas Sarkozy and Economy Minister
Christine Lagarde expressed their anger at the Caisse d'Epargne
loss and the bank's chairman, chief executive and finance head
all resigned on Oct. 19 following the political criticism.
Caisse d'Epargne said the loss had been caused by a small
team of traders. The traders made a wrong bet on the direction
of the stock market and had exceeded their trading risk limit.
Caisse d'Epargne is planning to merge with rival French
mutual lender Banque Populaire.
Caisse d'Epargne and Banque Populaire both have stakes of
35 percent in Natixis (CNAT.PA), the French investment bank
that has been hit hard by the credit crisis.
(Reporting by Thierry Leveque)