Thursday, October 30, 2008

French police hold derivatives trader

Caisse d'Epargne trader is held

French police have detained a trader for questioning over the loss of 751m euros (£601m) at savings bank Caisse d'Epargne, judicial officials say.

He was taken into custody as part of an inquiry into whether anyone was criminally liable for the loss, made as a result of complex derivative trades.

The bank initially put the loss at 600m euros, but has since revised it upward.

The bank's top three executives have all resigned since the loss came to light earlier this month.

Chief executive Charles Milhaud stood down after saying he accepted full responsibility for the lost cash and is expected to leave without a pay-off.

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