The trader blamed for a 4.9bn-euro ($7bn; Ј3.7bn) loss at Societe Generale has reportedly said the bank must have been aware of his risk taking.
Jerome Kerviel told investigators that he was "convinced" the bank's bosses knew of his bets but had turned a blind eye, according to French press reports.
However, lawyers for Societe Generale said this was a "lie".
The scandal is set to dominate a Societe Generale board meeting to be held later on Wednesday.
It is thought the board will discuss whether or not Societe Generale's chief executive Daniel Bouton should resign.
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But many believe his long-term future in his post is untenable, with even the French President Nicolas Sarkozy putting pressure on the bank's top management to accept responsibility for the illicit actions of Mr Kerviel, a junior trader at the bank.
Who knew what?
Mr Kerviel, 31, is being investigated for breach of trust, falsifying documents and breaching computer security - but not the more serious charge of fraud.
Societe Generale says Mr Kerviel had an unauthorised position, or a bet, worth about 50bn euros on the future direction of European shares.
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 experience in administrating trades enabled him to bypass strict risk controls. It said he invented deals that, on paper, balanced out his bets.
But in testimony published in the French daily Le Monde, Mr Kerviel said he "did not believe" the bank's senior management would not have been aware of the risky bets he was taking, which dated back to 2005.
"It's impossible to generate such large profits with small positions, which leads me to say that when I'm in the black, my superiors close their eyes about the methods and volumes committed," he was reported as saying.
(BBC)
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