(Agencies)
Updated: 2008-01-30 15:55

French bank Société Générale's chairman and co-chief executive Daniel Bouton and his closest lieutenants would be asked to step down to pay for the colossal losses with their jobs, media reported Wednesday.

A day after President Nicolas Sarkozy said top executives at Société Générale should face “consequences” for the 4.82 billion euros (US$7.13 billion) in losses linked to unauthorized trades by a single midlevel employee, finance minister Christine Lagarde described the bank as being in a “crisis,” needing to examine “whether they should change the captain.”

"We are in a system where, when you have a big salary, which is without doubt legitimate, and there is a big problem, you cannot escape your responsibilities," president Sarkozy said late Monday.

Justice Minister Rachida Dati also said Bouton may have to take responsibility for the biggest ever fraud losses in investment banking.

The chairman offered his resignation last week but the board rejected it then.

"Light must be cast on all those responsible and they must be able to give an explanation of this huge affair," said Dati.

After being questioned in police custody for more than 48 hours, Jerome Kerviel, the trader, was released late Monday but ordered not to leave the country or communicate with Societe Generale employees until the case was resolved.

“I can’t believe that my superiors were not aware of the amounts that I was committing, it is impossible to generate such profits with small positions,” Kerviel.