Cops Hold 2nd Trader in Probe

A broker who works for a Societe Generale subsidiary is being questioned by French authorities in connection with the $7 billion loss the bank suffered at the hands of rogue trader Jerome Kerviel, the Wall Street Journal reports. Prosecutors and bank officials previously said they believed Kerviel acted alone, but a series of instant messages suggest the second trader at least knew of the scheme.

One of the messages from the broker to Kerviel read: “You did not do anything illegal in the sense of the law.” Kerviel so far has been charged with forgery and illegal use of computers. He is free for the moment but cannot leave France. Police have questioned other SocGen employees, managers, and executives. (More Société Générale stories.)