Last month, Industrial Bank claimed that Jerome Kerviel, a trader, had caused trading losses of 4.9 billion euros ($7.2 billion).
The report supports Industrial Bank's previous statement that Kerviel's behavior is personal.
According to the report, "at this stage of the investigation, there is no evidence of misappropriation or accomplices from inside or outside (a third party knowingly helped Kerviel hide his trading position)."
"The investigation is still in progress, and we have especially expanded the investigation to a wider field beyond Kerviel's behavior," the report added.
Kerviel, aged 3 1, is currently under formal investigation on three charges of breach of trust, computer abuse and fraud. He is now being held in a prison in Paris.
The internal report reiterated that Kerviel began to establish unauthorized trading positions from 2005 to 2006, but the amount was very small, but since March 2007, Kerviel began to conduct large transactions.
When Industrial Bank discovered Kerviel's trading behavior at the end of May 438+10 this year, his accumulated trading position had reached 49 billion euros. At that time, European stock markets were falling, and Industrial Bank had to remove these parts from 65438+1October 21-65438+1October 23.
Chasing bonuses?
The media commented that one of the reasons for Kerviel's behavior may be that he didn't get the same bonus as his colleagues before, so he wanted to please his boss.
According to the report of Industrial Bank, Kerviel won a prize of 60,000 euros in 2006. In 2007, he said he hoped to get a bonus of 600,000 euros, but he only got half of it.
Cowell's fraud includes tampering with the start date of warrants, trading futures contracts illegally and trading forward contracts with each other in other departments within Industrial Bank.
One day after the release of the above report, Industrial Bank will announce its financial year 2007 results. Last month, Industrial Bank said that it expected the net profit in 2007 to drop by 82% compared with the previous year to 947 million euros, which meant a loss of 3.35 billion euros in the fourth quarter of fiscal year 2007 alone.