From Forbes account of the Societe Generale billion dollar fraud:
"It's Nick Leeson, the story is exactly the same," said Celent's Pierron. "We have a trader who trades futures, or derivatives, who hides his losses by using weaknesses in the risk-management system." He said that as long as traders had knowledge of back-office operations, the risks ofSo, segregate controls, but keep them obscure.
abuse would always be there.
A spokesperson for Societe Generale said that there would be thorough reviews of internal controls, but noted that this particular case of fraud was "very, very sophisticated."