She made the comments as she delivered a report on the bank's trading losses to the French government.The bank blames junior trader Jerome Kerviel, 31, for a 4.9bn-euro ($7bn; £3.7bn) loss, though he has reportedly said it knew the risks he was taking."Very clearly, certain mechanisms of internal controls of Societe Generale did not function, and those that functioned were not always followed by appropriate modifications.""Inspections by the banking commission carried out in 2006-7 had led to recommendations seeking to strengthen the security of operations."The report into the scandal also called for clearer divisions between the roles of government and regulators, and it recommended the banking commission be able to impose tougher penalties.t also proposed talks with major trading partners on the scandal to ensure that international standards apply.
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