New twists ahead in France’s rogue trader saga

PARIS, Feb 10, 2008 (AFP) – A new court battle will be held Monday over the detention of French rogue trader Jerome Kerviel while Societe Generale is to soon launch an eight billion dollar capital increase to cover the losses they blame on him. The decision by a Paris appeals court on Friday to back a prosecution demand that the 31-year-old trader be held in custody was the latest twist in the worst investment banking scandal in history.

His lawyer, Elisabeth Meyer, said she would go to a higher appeals court on Monday.

The prosecution said Kerviel could influence any accomplice or witness and at the same time as the hearing was held, police questioned a broker at a Societe Generale subsidiary through which Kerviel handled many of his tens of billions of dollars in European share trades.

The broker was released on Saturday but remains an assisted witness, meaning he could still face charges.

Societe Generale has blamed Kerviel for 4.82 billion euros (7.1 billion dollars) of losses from unauthorised trades worth at least 50 billion euros (73 billion dollars).

He faces charges however of breach of trust, fabricating documents and illegally accessing computers.

France’s Financial Markets Authority (AMF) was to meet F