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Kerviel Says Others Broke Bank Rules -Prosecutor

PARIS
Mon Jan 28, 2008 8:01am EST

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PARIS (Reuters) - Jerome Kerviel, the former trader at the center of the Societe Generale (SOGN.PA) fraud scandal, has accused other traders at the French bank of breaking its regulations by trading beyond their limits, the Paris prosecutor said on Monday.

Prosecutor Jean-Claude Marin said Kerviel had told investigators that the other irregular deals had taken place since the end of 2005.

"There were other traders who had acted in a similar way by exceeding their trading limits," he said, summarising evidence given to police by Kerviel who has been held since Saturday.

The prosecutor said the investigation had shown that Kerviel had acted alone, but that Eurex, the European derivatives exchange, had warned SocGen in November last year about his positions.

A SocGen spokeswoman had no immediate comment.

"Eurex alerted Societe Generale in November 2007 about the positions taken by Jerome Kerviel. Questioned by the bank, he produced a fake document to justify the risk cover," Marin told a news conference.

(Reporting by Thierry Leveque, editing by James Mackenzie)



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