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Société Générale

SocGen raises questions over Fed rate cut

By Paul J Davies, David Oakley and James Mackintosh in London, Ralph Atkins in Frankfurt and Krishna Guha in Washington

Published: January 24 2008 20:10 | Last updated: January 24 2008 20:10

The Federal Reserve had no inkling about Société Générale’s firesale of stock futures following the discovery of a rogue trader when the US central bank made its emergency interest rate cut.

The question being asked by some in the markets is: was the Fed duped into a clumsy and panicked move by the clean-up operation for Jérôme Kerviel’s mammoth losses for the French bank?

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