Business and Finance

PARIS–Police arrested an employee from the trading room of Societe Generale on Wednesday as part of their investigation into an alleged rogue trading scandal at the French bank, Europe 1 radio reported.

In January, SocGen unveiled 4.9 billion euros ($7.53 billion) of losses which the bank blamed on rogue deals carried out by Jerome Kerviel, a 31-year old junior trader at the bank. The losses have made SocGen a possible bid target.

Europe 1 said police on Wednesday morning arrested a former colleague of Kerviel. Europe 1 did not identify the individual.

"A former colleague of Jerome Kerviel was arrested this morning," the radio station reported.

A spokeswoman for Societe Generale said that police had searched the bank's trading room on Wednesday and added that one person was being held for questioning.

Kerviel has been placed under formal investigation for breach of trust, computer abuse and falsification payday advances. He is currently being held in a Paris prison.

Europe 1 radio added the person held was among one of Kerviel's friends listed on the Facebook Internet social networking site.

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