PARIS (Reuters) - French bank Societe Generale disclosed one of the biggest alleged frauds in financial history on Thursday, adding to a wave of gloom surrounding world markets battered by credit market losses.
SocGen, France's second-biggest listed bank, said it had uncovered an "exceptional fraud" by one of its traders.
It said this would cost the group 4.9 billion euros (3.7 billion pounds) and announced plans to raise 5.5 billion euros through a capital increase to shore up its balance sheet, also reeling from a crisis in global credit markets.
The fraud disclosure brought back memories of Nick Leeson, the British trader who in 1995 brought down blue-blooded merchant bank Barings after racking up huge losses.
http://uk.news.yahoo.com/rtrs/20080124/tts-uk-socgen-a8bf950_3.htmlTheir shares have been suspended.
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