French minister denies early knowledge of SocGen woes

By Anna Willard

PARIS (Reuters) - French Economy Minister Christine Lagarde only knew about the trading scandal at Societe Generale a day before it was made public and not the weekend before as suggested by a French radio station on Tuesday.

Europe 1 radio, citing a source close to SocGen, said Lagarde was informed of SocGen's troubles on Sunday January 20, three days ahead of the rest of the government, and the same day as the Bank of France and the market regulator, the AMF.

"That's totally false. We categorically deny it. I can tell you that she knew on Wednesday, January 23 in the morning," a spokesman for Lagarde said.

A later statement said she was told at 8 a.m. (2 a.m. EST), in a phone call with SocGen boss Daniel Bouton.

Lagarde herself said on LCI television on Tuesday she was told on Wednesday morning along with the rest of the government. She said this was also the same day as President Nicolas Sarkozy found out.

However, a source in Sarkozy's office told reporters in India over the weekend he was informed on Tuesday evening.

Bouton said he told the Bank of France governor Christian Noyer and the financial markets regulator, the AMF, on Sunday.

A source close to the matter told Reuters Sarkozy was angry with Noyer for not having told him earlier about the bank's woes.