French bank 'had trader warning'
Mr Kerviel has been released on bail
French stock market officials warned Societe Generale about alleged rogue trader Jerome Kerviel late last year, a Paris prosecutor has said.
With Mr Kerviel now released on bail, the prosecutor's comments increase the pressure on the bank to explain why his trades were not discovered earlier.
Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security.
Societe Generale says his actions cost it 4.9bn euros ($7bn; £3.7bn).
'Crisis situation'
The bank, which says it only discovered Mr Kerviel's unauthorised trades 10 days ago, had been pressing for Mr Kerviel to face the more serious charge of fraud.
Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it
Defence lawyer Christian Charriere-Bournazel
His lawyer, Elisabeth Meyer, on Monday called the judges' decision not to press for fraud charges a "great victory".
As police investigations into Mr Kerviel's actions continue, French politicians are increasing the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton.
"Societe Generale is in a crisis situation," said Economy Minister Christine Lagarde in an interview on French television.
"In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain."
French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the scandal.
'Invented deals'
Societe Generale says Mr Kerviel had a position, or a bet, worth about 50bn euros on the future direction of European shares.
SOCIETE GENERALE IN FIGURES
Founded in 1864
467bn euros in assets under management (as of June 2007)
22.5 million customers worldwide
120,000 employees in 77 countries
Societe Generale share price
That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit.
To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros.
Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities.
It says Mr Kerviel invented deals that, on paper, balanced out his bets.
'No evidence'
Mr Kerviel's other lawyer, Christian Charriere-Bournazel, said his client had committed no fraud, adding that Societe Generale's chief executive Daniel Bouton had no evidence to back up his allegations.
"The word fraud was used by Mr Bouton numerous times," he said.
"Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it."
Under French law breach of trust carries a maximum sentence of three years in prison and a fine of 370,000 euros.
While a formal investigation has started into Mr Kerviel's actions, this does not automatically guarantee that a trial will follow.
Mr Kerviel has been released on bail
French stock market officials warned Societe Generale about alleged rogue trader Jerome Kerviel late last year, a Paris prosecutor has said.
With Mr Kerviel now released on bail, the prosecutor's comments increase the pressure on the bank to explain why his trades were not discovered earlier.
Mr Kerviel is being investigated for breach of trust, falsifying documents and breaching computer security.
Societe Generale says his actions cost it 4.9bn euros ($7bn; £3.7bn).
'Crisis situation'
The bank, which says it only discovered Mr Kerviel's unauthorised trades 10 days ago, had been pressing for Mr Kerviel to face the more serious charge of fraud.
Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it
Defence lawyer Christian Charriere-Bournazel
His lawyer, Elisabeth Meyer, on Monday called the judges' decision not to press for fraud charges a "great victory".
As police investigations into Mr Kerviel's actions continue, French politicians are increasing the pressure on Societe Generale's embattled chairman and chief executive Daniel Bouton.
"Societe Generale is in a crisis situation," said Economy Minister Christine Lagarde in an interview on French television.
"In a difficult moment, the board members are there to decide if the person in charge is the best placed to run the ship when it is pitching a bit, or whether they should change the captain."
French President Nicolas Sarkozy has already said that the bank's senior managers had to accept their share of responsibility for the scandal.
'Invented deals'
Societe Generale says Mr Kerviel had a position, or a bet, worth about 50bn euros on the future direction of European shares.
SOCIETE GENERALE IN FIGURES
Founded in 1864
467bn euros in assets under management (as of June 2007)
22.5 million customers worldwide
120,000 employees in 77 countries
Societe Generale share price
That was more than the bank's value - about 35bn euros - and about the size of France's entire annual budget deficit.
To avoid that potentially catastrophic loss the bank had to unwind Mr Kerviel's trades, but that still cost it 4.9bn euros.
Societe Generale said Mr Kerviel's background in handling the administration of trades enabled him to fool those monitoring traders' activities.
It says Mr Kerviel invented deals that, on paper, balanced out his bets.
'No evidence'
Mr Kerviel's other lawyer, Christian Charriere-Bournazel, said his client had committed no fraud, adding that Societe Generale's chief executive Daniel Bouton had no evidence to back up his allegations.
"The word fraud was used by Mr Bouton numerous times," he said.
"Mr Bouton held this unfortunate man up for public vilification, threw him to the dogs... and there was no substance to it."
Under French law breach of trust carries a maximum sentence of three years in prison and a fine of 370,000 euros.
While a formal investigation has started into Mr Kerviel's actions, this does not automatically guarantee that a trial will follow.
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