Second SocGen trader is detained

A second trader at Societe Generale has been arrested as part of the probe into an alleged rogue trader scandal at the bank, according to judicial officials.The trader is reported to be a colleague of Jerome Kerviel, who is being held in a Paris prison.

Societe Generale announced 4.9bn euros ($7.6bn; £3.8bn) of losses in January, which it blames on Mr Kerviel.

The bank confirmed that police had searched its trading floor and held one person for questioning.

‘A scapegoat’

This person has not been named, but is understood not to be the broker from the bank’s Fimat unit – now called Newedge – and who was questioned and since named as a witness.

Mr Kerviel is being investigated for breach of trust, computer abuse and falsification.

He has previously said that he refused to be made “a scapegoat”.

He is due to appear in court on Friday in an attempt to secure a temporary release while the investigation continues.

Mr Kerviel has previously said that he was acting alone, but insisted that his bosses ignored his huge trades as long as he was making a profit.

On Tuesday, Societe Generale announced that it had raised 5.5bn euros ($8.5bn; £4.2bn) by selling reduced-price shares to existing investors.