Kerviel jailed as broker questioned in SocGen probe

By Tim Hepher and Andrew Hurst

PARIS (Reuters) - Jerome Kerviel, the trader blamed by French bank Societe Generale (SOGN.PA: Quote, Profile, Research) for huge losses, was jailed while police questioned a broker on whether he knew about Kerviel's illicit deals.

Kerviel was taken to La Sante prison, close to the centre of Paris, where high-profile suspects such as business leaders and politicians are often held while under investigation.

His lawyer, Elisabeth Meyer, was seen by reporters at the scene leaving the hearing in tears. She said she would appeal the decision of the Paris appeals court.

The court ruled that Kerviel, a junior staffer blamed by SocGen for a $7 billion trading loss, should be held in custody during the investigation because he might try to run or act in concert with any accomplices he may have had.

Meanwhile, police questioned a second person, identified by two sources familiar with the matter as Moussa Bakir. Bakir works at Newedge, a brokerage formerly known as Fimat that carried out orders on behalf of Kerviel.

Newedge's offices were raided by police on Thursday. Bakir's initial 24-hour detention period had been extended by another day, a legal source said.

If the investigation finds that others had a hand in Kerviel's illicit trades, prosecutors may have new grounds to press fraud charges.

SocGen has maintained that Kerviel acted on his own and SocGen lawyer Jean Veil said it was "premature" to comment on the developments in the probe.