Financial Times FT.com

Markets ask if the Fed was duped

By FT reporters

Published: January 25 2008 02:00 | Last updated: January 25 2008 02:00

The Federal Reserve had no inkling about Société Générale's fire sale 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 now by some in the markets is: was the Fed duped into a clumsy and panicked move by the clean-up operation for Jerome Kerviel's mammoth losses for the French bank?

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