France's Finance Ministry has called for tighter banking controls after the Societe Generale trading scandal.
Christine Lagarde, France's economy minister, said the bank's internal controls "did not work".
She made the comments as she delivered a report on the bank's trading losses to the French government.
The bank blames junior trader Jerome Kerviel for a 4.9bn-euro ($7bn; Ј3.7bn) loss, though he has reportedly said it knew the risks he Lee 'to close N Korea ministry' ...
Talks to begin over French strike ... was taking.
The report into the scandal also called for clearer divisions between the roles of government and regulators.
In addition, it recommended tougher penalties for fraud and talks with major trading partners on the scandal.
However, Ms Lagarde said the bank followed market rules when it unwound the unauthorised transactions by Mr Kerviel.
"The unwinding of the positions at the source of the loss on 21, 22 and 23 January was done in a professional way in difficult market conditions that could not be attributed to Societe Generale," Ms Lagarde said.
Some analysts have said Societe Generale was behind sharp falls in European stock indexes during January.
(BBC)
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